Following a tumultuous week of market action, RBOB closed the week stronger due to refinery turnaround news and macro index fund rebalancing. Data shows that most petroleum product contracts including crude had to be reduced to rebalance indexes while RB was increased. Distillate cracks had been stronger as NG markets rallied in Europe due to Russian supply concerns. Demand remains weak across the board, which muted the early week rally despite Gaza conflicts. Furthermore, unemployment data in the US reported today was slightly worse than expected, pressuring most markets lower.
Continued RB strengthening may be hedged with calls here, or puts hedging long physical. We are now finally in positive RB crack in the futures market. In general, crude does not look like a great hedge against refined products now as crack volatility remains high.
New York 15h00.
Friday, January 9, 2009
Subscribe to:
Posts (Atom)
Posts
