The Volatility Remains The Same

On September 28, 2012 by TradingDesk

Nymex RBOB futures continue to provide the most interesting headlines this week, and yesterday’s 12 cent spike was cut in half (and some physical markets actually ended the day trading lower) the volatility remains as the contract has already jumped by over a nickel this morning. Meanwhile, European energy products continue to lead advances in crude and diesel, with Iran’s sabre rattling taking most of the blame, although Israel’s UN speech yesterday has suggested to many that an attack won’t happen before the US elections as has been feared.

With a 26 cent backwardation in RBOB futures from October to November, charts are setting up with a double-top pattern suggesting that we have in fact witnessed the fall peak in gasoline prices, and should begin a drop that typically ranges 20-30% into the winter months before rising again in the spring.

CLICK HERE for a PDF of this morning’s charts.



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