• 3 minutes Electric cars may make driving too expensive for middle classes, warns Vauxhall chief
  • 6 minutes Natural gas mobility for heavy duty trucks
  • 12 minutes Colonial pipeline hack
  • 8 mins U.S. Presidential Elections Status - Electoral Votes
  • 3 hours Texas Power Outage Danger Until June 18th. Texans told to conserve energy!
  • 6 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 day Succession Planning in Human Resources for Vaccinated Individuals in the Oil & Gas Industry
  • 2 days Federal Judge Says Biden Probably Wrong for Halting Drilling on Federal Land
Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

A Shift in Sentiment for October Gasoline Futures?

Gasoline Futures Outlook

This week’s technical chart pattern and a slight change in the fundamentals may be indications of an impending shift in sentiment for October Gasoline futures. At the same time, the price action and fundamentals remain bearish for crude oil.

Further evidence that gasoline may be poised to rise while support for crude oil continues to erode was seen in this week’s widening of the crack spread. The crack spread is a rough measure of the profit from processing a barrel of oil into gasoline. Just like some professionals trade the price differential between Brent Crude Oil and WTI Crude Oil, they also trade the relationship between gasoline and crude oil.

This week, the crack spread moved from $16.67 a barrel to $18.15 on August 6. On July 24, the spread was at $16.08. Its lowest level since February. This price movement also corresponds with the time period when stories started to circulate about a possible early shutdown for refinery maintenance.

Falling gasoline prices since late June have cut into refinery profit margins leading some to curtail production and shut down earlier than usual for maintenance. This should lead to a decrease in gasoline inventories, however, demand for crude oil should drop, leading to further increases in inventory and the possibility of lower prices.

This week, the Energy Information Administration (EIA) reported that gasoline inventories fell to 213.8 million barrels in the…




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News