Mixed Bag of Trading

On October 17, 2012 by TradingDesk

In what’s becoming a theme in energy markets, we have another mixed bag of trading today. WTI is pushing higher, despite a 3.7 million barrel build in supply reported last night by the API, and a falling Brent contract. HO is down a penny, and RBOB is trading either side of unchanged. While the complacency in technical studies largely remain, signs of the contracts rolling over into their typical seasonal bearish pattern.

While the futures are stuck in standstill, cash markets in the US continue to put on a show. Gulf Coast gasoline prices are down 28 cents in the last 5 days, a 9% drop that seems impressive, until compared to the Chicago and West Coast markets, which have both witnessed 60 cent drops during the same time-frame, as supplies shift from a summer-grade famine, to a winter grade glut. Meanwhile, Group 3 ULSD Prices have also dropped 30 cents in the past week, as agricultural demand comes to a screeching halt, after the record drought set harvest in motion several weeks early.

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