RBOB surges, HEAT ends lower
Early morning news of Hess shutting down its St. Croix facility from producing gas to strictly an oil storage facility sent RBOB futures higher some seven cents before the opening bell even rang. Fear of tightening eastcoast gasoline supplies could not have hit at a worst time as ongoing tensions with Iran have again made headlines. Iran appears to have got the eye, or wallet, the Saudis as they have gestured they are unwilling to pick up additional pumping left by removing Iranian barrels from the market place. Realistically, this means that the Kingdom is comfortable with Crude above $100. The trade seemed to cool off as the day moved on with large builds expected across all products in the delayed DOE report. Additionally, looming concerns over the long term demand continue to be a bearish influence on any price breakouts beyond our current range. At the Close, Crude fell 12 cents to finish at $100.59, RBOB surged .0541 to $2.8254 and Heat fell .0238 to $3.0134.