While Chicago is thrilled with being the World Champions of hockey, it is tired of being number one in gasoline prices. Just as hopes were being raised that we could see gas prices start to fall, a storm cut the power to the refinery in Lemont, Illinois.
Gasoline slid the most in seven weeks, dropping along with crude and other commodities on concern the Federal Reserve will reduce economic stimulus and as data signaled China’s growth is slowing. Crack spreads narrowed.
When it comes to gas prices in the Midwest it seems that lightning strikes again and again and again. Just when it seemed that Midwest refineries were starting to get their act together, lightning strikes and prices go crazy again.
If you want an objective view of energy, ask an economist, who can tell you what to expect to pay at the pump in the coming years, and why, as well as what to expect from medium- and long-term economic growth and what the real drivers will be.
With gold and silver capitulating and Treasury yield rising, oil will have to balance the bearish implications of the Fed talking about an exit strategy versus the disinflation that is now plaguing Europe.
Against a backdrop of rising supply and a murky economic backdrop, RBOB gasoline rises up out of the ashes. Ok maybe not ashes but rising on refining and pipeline issues as we get ready to top off the tank for the upcoming kickoff to the summer driving season.