RBOB gasoline futures rose to the highest level since June, giving some support to oil that is suffering from seasonal weakness and concerns about oversupply. Price spikes along the East Coast are inevitable as cash buyers scramble to secure supply.
Crude oil prices saw a quick reaction after the Energy Information Agency showed a draw in a surprise drop in crude but fell sharply as traders mulled an increase is U.S. crude oil production as well as a colonial pipeline inspired increase in distillate stocks.
The crude oils are trading lower after the EIA released its latest weekly oil inventory report. The data showed that total crude and product stocks increased by 4.503/mmbls to 1404.679/mmbls for week ending Aug. 26.
Crude oil prices are rebounding after getting smashed on Monday on hopes for more stimulus and pending the outcome of some oil export issues in Iraq. On Monday, oil had a hard time finding support as the dollar saw strong buying and a report by Plats that put OPEC production up 300,000 barrels last month to 32.73 million barrels of oil a day, which would be an eight-year high.