RBOB Continues Plunge as HEAT Stalls

Posted by Mark Pszeniczny on Apr 19, 2012 5:16:00 PM

Gasoline futures continued to sell off today after starting the early morning in the green. RBOB was up as much as 2 cents prior to the opening bell on news of Spain having a successful bond sell off to avoid yet another European debt scare. That bullishness turned however as Germany was said to be at odds with other Nations on how to proceed with the European Zone bailout plan. Simultaneously, Moodys was said to be ready to announce a downgrade of France's debt rating that caused the US dollar to push higher. A higher Dollar generally has a negative affect ( or positive affect from some viewpoints) on Commodities. Crude looks to be poised to fall below $100 for some time, getting as low as $101.67 before closing at $102.27, down .40. NatGas inventories were in line with estimates and on a whole remain roughly 700 bcf higher than the 5 year average. Even with the sessions slight bump in HO, finishing up .0069 to $3.1251, we are still roughly .15 less than two weeks ago. RBOB continues to be the dog falling another .0486(almost .25 in two weeks) to $3.1541. While it is nice to see the prices fall, realistically most think another .25 needs to be pulled off to get back to a "normal" state.

 

Daily Heat Chart

Heat map

RBOB CLOSE
CLOSE CHANGE
 
MAY 31541 -.0486
JUN 31158 -.0331
JUL 30758 -.0220
AUG 30367 -.0176
SEPT 29974 -.0152
OCT 28550 -.0110
HEAT CLOSE
CLOSE CHANGE
MAY 31251 +.0069
JUN 31284 +.0065
JUL 31320 +.0060
AUG 31353 +.0053
SEPT 31388 +.0048
OCT 31445 +.0039

Topics: Commodities, Spanish Bonds, CRUDE, Dollar Strengthens

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