Markets

Morning Gasoline Market Report

Clearly the energy complex was lifted by another supply side problem in North America yesterday. With the US refinery operating rate now typically hovering around 18% to 20% idled, the threat off any outage is given more credence. However, with the supply problems into Chicago mostly expected to be temporary, it is possible that the late May recovery effort has left RBOB prices at least a little short term overdone. From the May low, to the high yesterday, July RBOB was up as much as 26 cents a gallon, with a large portion of that run up compacted into the Tuesday action. With the market also seeing a series of negative gasoline demand stories overnight and the US economic report slate generally throwing off weakness, it is possible that gasoline futures prices up near $3.10 could be difficult to maintain without some addition supply incidents. Critical support in the July RBOB might not be seen until the recent consolidation lows of $3.0076.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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