Gasoline at the pump broke its streak of going higher week after week as the Lundberg survey reported that the average price for regular gasoline at U.S. pumps fell 5.56 cents a gallon in the past two weeks to $3.7394 a gallon. This is a sign that at last a top may be in but if we look at "RBOB" futures they are telling a different story this am. The story is to beware.
After a late spike on Friday afternoon and more follow through this morning RBOB futures are rebounding like crazy. Refiners are drawing down winter blend inventories and supply is falling. This comes as Dow Jones reports about an equipment failure at Shells Deer Park Refinery in Deer Park, Texas, resulted in flaring Saturday, when a release of acid gas was routed to a flare stack during normal procedures, a report to the U.S. National Response Center said. The filing didn't specify which unit or units were involved in the incident, nor did it say whether the event had an impact on production. A Shell representative wasn't immediately available to comment. The 327,000-barrel-a-day Deer Park Refinery is operated by Shell Oil, a subsidiary of Royal Dutch Shell in partnership with PMI Norteamerica S.A. de C.V., a subsidiary of Petroleos Mexicanos, or Pemex.
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