RBOB soared on rumors that a Canadian refiner was in the cash market buying product. Sure enough our refining nightmare continues. That makes three refineries that serve the New York Harbor market have units shut or slowed.
Last week August 2013 RBOB opened at $2.9015 and closed the week at $3.1175. On July 1, gasoline opened at $2.7101 and since then we have only seen one red candle in July. Could we see $3.40 before all is said and done?
Gas soared on Friday on a string of refining issues. Gasoline went crazy as wholesalers were stunned by strong demand. Despite near record production, supplies are tightening and refining issues are making things jumpy.
Oil demand is surging and commodities are on a tear as Ben Bernanke helps add into a buying frenzy. Oil and gasoline have led the commodities market to an eight-day winning streak, the best since 2010.
Oil had a hard time deciding whether or not it wanted to continue its upward trajectory. While Egypt continues to simmer and we saw more violence, the truth is that the fears of an immediate risk to supply seems to be waning.