Oil gets new life as cold continues to grip much of the nation and tankers are turning and some refiners are not. A pop on gasoline on a Reuter’s report that U.S. Atlantic Coast blendstock ‘s strengthened Thursday as a cargo of gasoline was diverted from Boston to the Bahamas for blending and resale, though the eventual market for the gasoline remained uncertain, market sources and Bahamas terminal owner Buckeye Partners said.
On Top of that Bloomberg reported that Citgo Petroleum Corp. began shutting both plants at its Corpus Christi, Texas, refinery yesterday for about 35 days of planned maintenance, according to a person with knowledge of the work. The turnaround includes a crude unit at the East Plant and a coker, sulfur recovery unit and mixed distillate hydro-treater at the West Plant, said the person, who asked not to be identified because the information isn’t public. A message on a community hotline on Feb. 3 said that the refinery planned to shut units for planned maintenance until March 10.
Yet today it is all about jobs. The employment report will impact everything across the board from grains to oil and especially the precious metals. The bullish case for gold and silver continues to grow but the market is still waiting for an excuse to break out higher. They may get it today. The metals historic divergence with the stock market and the cash market shows that things are out of whack. The Metals failure to break down has led to a basing formation that if taken out could lead to a massive upside move in metals.
Based on historical chart patterns for gold and the S&P I believe that gold will take out its old high before the end of the year. Of Course we still have to break above $1,280-$1,300! But if we do, do not be surprised to see an explosive move.