NYMEX puts on rally hats to end day positive
We truly have moved to a market that is tick to tick. We all recall the days when a .01 move in the market called for a meeting. Today, right out of the gate RBOB was up .08 while HEAT limped along slower than Shaq last night and was negative most of the morning. Early in the session for about 20 minutes, both pits tumbled with HEAT negative almost 4 cents. Gasoline futures are spiking on concerns of Midwest flooding preventing shipments moving from key areas. But with overall gasoline demand slipping last week and demand destruction appears to be settling in as retail pump prices hover around the $4 mark, todays jump seems somewhat nonsensical. Imagine the gray hairs the station owners and gasoline end users have sprouted the last few sessions, from falling 20 cents one day to being up over 25 cents in the last two days! With Wednesday comes another round of inventory numbers that are expected to show Crude levels build by 1mbls and products to show slight increases. On another note, one which might have tempered todays gains, the NYMEX raised margin requirements making it more expensive for people to purchase futures, ultimately will have minimal effect on the course of business. At the close, Crude added $1.33 to $103.88, HEAT found strength towards the close and gained .0394 to $3.0012 and RBOB led the charge jumping .1013 to $3.3797.