I have been watching the spread/price differential between September 17 heating oil and September 17 RBOB gas futures.
The average gasoline price at the pump according to Gasbuddy.com broke through the $3.00 level this past week and today was at $2.91, a level not seen since late 2010.
Gasoline in New York rallied following a reported outage at Irving Oil Corp.’s Saint John, New Brunswick, refinery, which exports about half of its production to the Northeast market. Futures have jumped 7.9 percent since Sept. 12.
The Old Farmer's Almanac had it right last winter and their woolly caterpillars and other things they use to predict weather will send chills down your spine. They are predicting a “super cold “winter in the eastern two-thirds of the country.
Oil is trying to ignore geopolitical headlines. While Israel and Hamas agreed to a 72-hour cease-fire in Gaza easing momentum, yesterday’s report of Russia adding battalions near the border with Ukraine and conducting war games by the border is creating unease.
June-delivery gasoline fell 79¢ to $2.9013 a gallon at 12:21 p.m. on the New York Mercantile Exchange. Volume was 35% above the 100-day average.
Exxon Mobil Corp.’s push to export U.S. oil overseas is facing a new obstacle: Falling gasoline prices.
Oil prices, especially Brent, are being driven by an easing of the major geopolitical events in the MENA region. Libyan production is continuing to hold steady around the 650,000 bpd level.
Oil is at a three-week high just like that after Iran talks look like they are going nowhere and product demand surged against a back drop of some refining glitches.
Every time gas is getting ready to plunge to exciting lows, it seems something bad is bound to happen. RBOB futures rallied on high drama on the high seas as well as drama on the ground!