Rash Of Refinery And Logistics Issues Plague Markets
It’s been a strong week for energy contracts, with RBOB gasoline pushing north of $2.35/gallon for the first time since October of 2014, and leading the rest of the petroleum complex higher. Cash markets have also moved to multi-year highs as a rash of refinery and logistics issues plague markets across the western half of the country.
Oil and diesel prices have also had solid weeks, but remain below the multi-year highs they set early in July. That will remain a pivotal test near term, and if they fail to break above those levels, the case for a large technical-driven selloff continues to grow.
RIN values have joined in on the rally, even though grain prices have moved sideways, which could be at least partially blamed on the spike in West Coast product prices, since they will no doubt attract fresh imports, which generate a renewable volume obligation for the supplier.
Today is the last trading day of the month, so watch the September product contracts (RBU/HOU) for price direction.
Earnings week for the 2nd quarter has brought a deluge of data to sift through. The themes of dramatically different year on year comparisons, and new investment in renewables/carbon capture are prevalent throughout. This WSJ article highlights that the new focus on climate change isn’t just about appeasing investors, it’s also about protecting operations from extreme weather. A few highlights from some of the earnings releases are included below.