Gas Price Update, DOE Report

I haven’t let you know whats going on (well, we haven’t had a risk of a price hike, and I believe we still don’t)

Just thought with today’s DOE report, I’d let you know how things are looking.

The DOE report was much better than traders or I thought it would be (Labor Day didn’t kill inventories), so here is the good news:
** Refineries operated at 93.6% of capacity–> thats the highest number I’ve seen all summer.
** Gasoline stockpiles increased by 700,000 barrels. Traders were looking for a DROP of 400,000.
** Distillate stockpiles (heating oil, diesel) increased by 3.1 million barrels. THAT IS HUGE! Look for diesel to come down a few cents due to that.
** Crude oil inventories fell by 2.2 million barrels, but thats to be expected when you refine at 93.6% of capacity. We are still “WELL ABOVE” the average range for oil, so thats no big deal.

If this hurricane season stays quiet and–AND— if we see Iran calm down or MAKE A DEAL with the U.S. there is no reason that I can rule out $1.XX gasoline in the near future. HOWEVER, with Iran being so hard to work with, I don’t expect a easy solution to that.

Anyway, I’m looking for the gasoline futures to have a sell-off today, as a result of  1. MUCH less active hurricane season 2. No immediate Iran problem 3. VERY HIGH inventories

We could see 2.25-2.29 by early next week if we see a nice selloff today

~Patrick

Leave a Reply

Your email address will not be published. Required fields are marked *

Please leave these two fields as-is:

Protected by Invisible Defender. Showed 403 to 1,755,250 bad guys.

 

This site uses Akismet to reduce spam. Learn how your comment data is processed.

TheGasGame.com (c) All Rights Reserved Frontier Theme