Energy Market Updates

Futures Continue to Rise as Supply Questions Loom

Posted by Mark Pszeniczny on Jan 29, 2013 3:41:00 PM

The NYMEX continued strong gains as most early risers thought we would see a reversal of yesterdays spike. At 5 am, RBOB was down almost .03 and HO was down about a penny. It had me thinking that yesterdays reaction to the Hess announcement that it was closing their New Jersey refinery was somewhat overdone. But as the rest of the world woke up, and saw the Dollar struggling, Futures made an about face at the open. While consumer confidence was reported to be at the lowest levels since late 2011 (maybe an effect of Americans seeing less in their checks this month), Home values were reported to see roughly a 5.5% increase in values year on year. Back to the notion of a gasoline shortage, with there being only two major refineries to serve the Eastcoast, it is easy to see how some can predict a long term crunch. My hunch is higher prices will solve that problem eventually. Still, HO has risen above the top end of the range we have been stuck in since October, closing up .0476 to 3.1092, RBOB added.0386 to 2.9734 and Crude gained $1.13 to $97.57. All ahead of the relatively tropical forecast for the next two days. (shown below)

heat map

RBOB CLOSE
CLOSE CHANGE
FEB 29734 +.0386
MAR 29763 +.0354
APR 31242 +.0388
MAY 30961 +.0364
JUN 30469 +.0332
JUL 29971 +.0306
HEAT CLOSE
CLOSE CHANGE
FEB 31092 +.0476
MAR 30986 +.0443
APR 30806 +.0398
MAY 31151 +.0360
JUN 30961 +.0326
JUL 30856 +.0308

Topics: Hess closes Refinery, Dollar Struggles, East Coast Refineries, Gasoline Supply Crunch

    Energy Market Updates

    The information contained in this report has been taken from trade and statistical services and sources believed to be reliable. Dennis K. Burke, Inc. makes no representations or warranties with respect to the content of such news, including, without limitation, its accuracy and completeness. This bulletin is provided for informational purposes only, and is not intended as a recommendation to buy or sell commodities.

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