Refinery Issues Overshadow the FED

On October 31, 2013 by TradingDesk

Refinery issues overshadowed the FED Wednesday, after Irving Oil, a major contributor to the Nymex delivery hub in the NY Harbor confirmed that it had to unexpectedly shut units at its refinery in New Brunswick. RBOB values spiked 4 cents on the news.

WTI continued its slide, as the DOE confirmed that domestic stocks continue to rise near record-high levels for this time of year, despite refinery throughput rates that are above their 5 year trend. With Middle East supply concerns keeping a floor under Brent, the spread between the world’s two major crude contracts moved past $13, after beginning the month at $4.

The FOMC announced that it would maintain its $85 billion/month bond buying program as is for the time being, and yet equity markets sold off. It is said that bull markets don’t end on bad news, they end on a failure to rally on good news, now we’ll just have to wait and see if that plays out as we head towards year end.

The technical outlook for RBOB and HO remains mixed, with little near term direction. Seasonal factors suggest that we should see lower prices over the next two months.

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