What’s the deal with Gasoline? Newman!
Did you ever pour yourself an ice cold beer? Once it hits your lips, it’s so good. However sometimes you have to wait until the foam settles. Too much foam. Beer good. Foam bad. So much foam. Remember the episode of Seinfeld when everyone agreed that muffin tops were awesome but that the muffin stumps weren’t so great. Elaine spends the show trying to dispose of muffin stumps. Well, the same thing is happening with diesel and gasoline. The US needs diesel. Diesel inventories are low going into the winter. There is no spare diesel to import. Meanwhile, the refineries are running like crazy trying to make more diesel. As a result, the refineries are making lots of gasoline also. But we’re not driving anymore. Too much gasoline! Gasoline prices are dropping like a rock at the pump, plummeting to their lowest prices of the year – well below $3/gallon. The gas crack is at a 3 year low. Market structure flattening. Time to store gasoline? Just like Newman eating the muffin stumps, The Tank Tiger can come to your rescue. Overall oil prices declined as traders focused on activity in the middle east and a less than stellar jobs report. Brent crude closed Friday at $84.89 a barrel with WTI clocking in at $80.51 a barrel. All of a sudden, $100/barrel seems a bit far away. Don’t get caught napping, the crude storage hub at Cushing saw a net gain last week of 375,000 barrels , adding to the previous week’s build of 500,000 barrels. The Tank Tiger is showing storage there as well.
Congrats to the Texas Rangers for winning the World Series that nobody watched. TV ratings for the fall classic were somewhere in the neighborhood of Gilligan’s Island reruns. The stock market fared much better last week, posting the biggest weekly gains of the year, on hopes that the interest rate hikes have mercifully ended. Bond yields also declined. Regardless, the news cycle still has a hand on the wheel – so let’s all hope that a steady hand will prevail in the long run.
