Spring is here and higher gasoline prices are on the way!

The east coast attainment areas (Major Cities and Surrounding Counties) are emptying out of winter grade Reid Vapor Pressure (RVP) gasoline and lower RVP Summer grade gasoline is already in the major pipelines. 

This time begins a very sloppy price landscape with INDEX prices reflecting lower RVP gasolines at higher prices while suppliers are offering discounts to move out winter gas. 

Distributors will truck great distances to continue to pick up winter grade material and back haul into markets reflecting summer grade prices. The current price spreads are .10 to .15 higher depending on the market you are in. 

Further compounding the above price scenario is the current NYMEX move up the last few trading sessions. While we are getting a little profit taking today April future prices have moved up .14 per gallon since March 13th.

Prices are supported by bullish inventory and demand data. 

This week’s EIA report shows crude oil inventories fell by 2.6 million barrels. This is happening in the face of increased production. 

  • Gasoline inventories fell 1.7 million barrels a day
  • Distillate inventories fell 2 million barrels a day
  • Refinery runs are at 91.7% of capacity 

What does it all mean? It means demand is strong and it’s not even the driving season yet. The pros are bullish on price and buying on the dips and getting length and so on. 

Click here to see the shifts on demand.

 

Written by:

As Director of Marketing for Guttman Holdings, I lead our advertising, digital marketing, branding, and public relations strategies, and share my expertise to communicate key messaging to all our stakeholders. With my diversified leadership background, I also drive innovation and cutting-edge business practice and results, to generate interest in Guttman Energy, Guttman Renewables, and Source One service offerings.

Guttman Energy Daily Market Update Disclaimer – The information contained in this market update is derived from sources believed to be reliable; however this update could include technical inaccuracies or typographical errors and Guttman Energy does not guarantee the accuracy, completeness or reliability of this update. FURTHERMORE, THIS UPDATE IS PROVIDED “AS IS,” WHERE IS, WITH ALL FAULTS AND WITHOUT ANY WARRANTY OR CONDITION OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY. GUTTMAN ENERGY ALSO SPECIFICALLY DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES. YOU USE THIS UPDATE AT YOUR SOLE RISK. This update and any view or comment expressed herein are provided for informational purposes only and should not be interpreted in any way as recommendation or inducement to buy or sell products, commodity futures or options contracts.