Refiners?
Refiners?
Today, on Bloomberg (I think), I read that oil went down today because even though supplies are down gasoline inventory at refiners is up. This kind of stuff confounds me. It is starting to seem like oil just can't catch a bid. Are you aware of a gasoline glut that is now holding down futures?
Re: Refiners?
Read this: http://www.investing.com/news/commoditi ... ild-363022
This happens each year. September is when refiners change over from producing gasoline to producing more heating oil. There is actually a logical reason they need to build up a bit more gasoline inventory. One thing to keep in mind is that U.S. refiners can export gasoline, so the "glut" can easily be shipped out.
Day-to-day movements in oil price sometime make no sense at all. Keep in mind that "speculators" outnumber commercial traders in the futures market by more than 20 to 1. Analysts that have to explain each days move often must be "creative".
The oil price you see each day is the front month NYMEX contract. November became the front month this morning. Speculator rolling over their shorts can have a big impact.
You will all be getting a Flash Alert this evening from me with some good stuff attached. Read it carefully. The global oil markets are tightening.
This happens each year. September is when refiners change over from producing gasoline to producing more heating oil. There is actually a logical reason they need to build up a bit more gasoline inventory. One thing to keep in mind is that U.S. refiners can export gasoline, so the "glut" can easily be shipped out.
Day-to-day movements in oil price sometime make no sense at all. Keep in mind that "speculators" outnumber commercial traders in the futures market by more than 20 to 1. Analysts that have to explain each days move often must be "creative".
The oil price you see each day is the front month NYMEX contract. November became the front month this morning. Speculator rolling over their shorts can have a big impact.
You will all be getting a Flash Alert this evening from me with some good stuff attached. Read it carefully. The global oil markets are tightening.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Refiners?
Thanks so much for such a quick response.