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.
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.
Oil supply plunged last week by a whopping 6.3 million barrels last week. That drop was dramatic but we still are ending the month of May with supplies at a 10-year high -- as opposed to the 81-year high last week.
For oil, despite yesterday's tipper taper rally parade the market still has to overcome the fact that supply in the U.S. is overwhelming. Brent crude, though, is a bit more delicate and led the rally higher.
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.
U.S. oil refiners may draw from a reserve of 2.5 billion Renewable Identification Numbers that they’ve banked in previous years to meet federal requirements for the amount of ethanol they blend into gasoline this year.