The Bulls Control RBOB
While the API crude stocks build yesterday afternoon put prices under some pressure, the market has recovered this morning in the wake of countervailing supply news suggesting crude oil storage levels in Europe last week fell by a very significant 4.6%. In fact, Rotterdam alone saw a net weekly decline of 2.9 million barrels and WTI spread action this morning has reached the strongest price level in 16 months in a combination that favors the bull camp.
Both product markets were able to post new highs for the move and finish with moderate gains on Tuesday, and RBOB has posted another new high for the move this morning in a fashion that suggests the bias remains up.
Natural gas prices remain on the defensive and reached a new 1 1/2 week low this morning, with the market seemingly moving to price in the end of prospects for extreme and extended severe US cold.
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