Hurricane Sandy Stirs Rising Tide On RBOB Futures

On October 26, 2012 by TradingDesk

RBOB futures are leading the energy complex higher this morning, the NOV contract is up a nickel on the day and 18 cents since Wednesday morning, as hurricane Sandy eyes landfall next week in the heart of the PADD 1 refining zone and New York Harbor delivery point. Q3 GDP for the US has helped the rally pick up steam in the past 20 minutes, as the 2% print – while historically considered a modest number at best – beat many expectations, and reversed heavy selling in the stock market.

While it’s still too early to say what impact the storm, already predicted to be the worst to hit the US East Coast in 100 years, will have on energy supplies, it does appear that short term disruptions due to flooding and power loss will be widespread, with everyone from the Carolinas north to Boston under the gun.

Technical studies continue to favor lower prices in the near term, but with a major storm bearing down on the delivery point for NYMEX product futures, and many traders’ natural reluctance to be short ahead of a weekend, I’d expect the buying to continue for at least another day.

 CLICK HERE for a PDF of this morning’s charts

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