Like most in the energy sector this one has been hammered. Can't seem to find much info on it, some thoughts/links/articles/views on it please thank you for your time/help .... https://gyazo.com/1df1650b561aaafb5acc459786e7ded5
ty but any chance you could give more details as their moves in the past have been totally different, as you can see via that chart
"Their" moves? Gasoline price is going to lag the price of crude... takes a while for oil price to work through the gasoline refining/distribution system. Gasoline has a short "shelf life", so there is generally no significant "storage" aspect to its price.
John Thorpe - Cannon Trading Gasoline has never had a demand shock like this. let alone an aggressive supply shock, it's as simple as that. some times fundamentals rule the price discovery process. given there appears to be not much of a light at the end of the tunnel on the demand side of the equation with most global citizens in the G-8 are under house arrest. My question to you is why are California retail gas prices still at 3.69 / gal and New Orleans is under a buck?! Too bad options on unleaded are not as liquid as I would hope because there are some interesting plays on the option side.... Just for perspective, monthly chart going back to the 90's.....
Interesting and ty, but as soon as things settle virus wise and we start to come out of this, the energy sector will be in need as much as always right. So this thing should bounce a decent amount right?
The forward curve away from the prompt months is trading at a significant premium. Which tells you quite a bit. https://www.cmegroup.com/trading/energy/refined-products/rbob-gasoline.html
It tells me that beyond the summer driving season, that Commercials give our present pandemic troubles to last about two months.