Will the Market Go All the Way Up?

Gasoline and oil prices are still climbing today for the 6th consecutive day after the draws in inventory reported through the DOEs.  Some of these draws likely were the result of decreased production due to Tropical Storm Cindy that hit the United States late last week.  Cindy also has a hand in gasoline demand being down.  It is likely that gas demand will hike back up this weekend due to the holiday early next week on Tuesday.  Yesterday the market closed up again, front month HO up $0.0193 at $1.4330/gal, front month RBOB up $0.0235 to $1.4833/gal, and WTI Crude up fifty cents to $44.74/bbl. 

As you can see from the chart below, the United States is heavily impacting the price of crude with increased output in response to OPEC production cuts. Over the past year prices have slightly recovered after hitting 13 year lows and US inventories reaching all-time highs (until the recent high in March of 2017).

Fun Fact of the Day: The first United States commercial oil refinery began operation 157 years ago this month in 1860.   It was located in Titusville, PA and was centered on extracting kerosene from crude oil. 

Other pieces of important news:

  • Walmart has been telling trucking companies that it will stop doing business with them if they keep hauling goods for Amazon.
  • The average U.S. price for unleaded gasoline has been falling; as of Wednesday it is at $2.247/gal heading into the holiday weekend.
  • The US dollar is currently at a seven-month low.

Currently as of 11:45 a.m. ET the market is still rising, front month heating oil up $0.0126 to $1.4456/gal, and front month RBOB up $0.0083 to $1.4916/gal.

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