Took profit in 2/3 of my position just now at 1.4829. Set a limit buy at 1.4500 for the remaining size. Others may need to drive their cars for a few days to exit their long position in gasoline.
My bad, I read the headline awhile before and didn't think anything about it. I was thinking it said refinery for some reason not pipeline when I posted.
If the gasoline pipeline which feeds 1/3 the USA goes boom, what would one expect gasoline futures to do? Go down? No. Less supply, so prices jack up. Which they did. Not sure why there is an argument here about the movement of price.
Now, let's follow this through logically. This week's CL numbers will reflect last week. But next week's number may show an increased CL demand because of all the gasoline lost in yesterday's explosion, so refiners need to consume more crude to refine to petrol. And petrol inventories should show a decrease. However, we still have the OPEC meeting hanging over our heads at end of month, and Iran/Iraq are starting to waffle on the production-cut deal. So what can be gleaned from these facts? Go long short-term (next two weeks) then stay out before meeting? Tough call.
The argument was about whether to go long or short 4.5 hours after the fact (the time of the OP) when prices were already up 10% or so. That's a multi standard deviation move.
It only affects a small area of the country and should not affect the overall price of crude. Gas supply will be affected in some parts of the country but not all. This overall is a fairly minor problem and gas prices should re stabilize fairly quickly 2 weeks probably.
Decided to cancel my remaining limit buy and instead took profit just now on the remainder of the position and got filled at and avg of 1.4598x. (Posted a few seconds after my fills)
The line may be back in service by the weekend according to last report. FWIW this is the main supply for the whole east coast, so it is a major issue. Don't trade anything energy related if you don't have a clue about the details of the sector.
What are you talking about? The story is done, prices of gasoline reverted back to their previous levels. There were some terrific opportunities to trade this anomaly.