RBOB Explosion!

On September 27, 2012 by TradingDesk

News yesterday of an explosion at the St. John refinery on the east coast of Canada shook a quiet market awake with a sudden price spike in RBOB futures – since roughly half of the plant’s capacity ends up being imported into the NY Harbor market. Word that the explosion was in a non-operating unit, and would have little, if any, impact on supplies tempered the move only briefly, and the contract is off to the races again this morning, and currently stands 35 cents higher than a week ago. Rumors are circling that a major trader is caught in a massive short squeeze that’s exacerbating the runaway train affect. With expiration of the October contract just a day away, don’t expect the action to slow until next week.

CLICK HERE for a PDF of today’s chart

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