Morningstar

WTI/RBOB Algos Undecided After Gasoline Build, Production Dip

RBOB gasoline is at a 25-month high (and WTI has a $45 handle) as all attention is focused on the duration and impact of the storm (i.e. how long refineries will be closed?). Inventory and Production data this week will be of limited help to traders as it occurred before Harvey struck but API confirmed the crude draw, gasoline build trend overnight, and DOE data shows the same pattern - crude draw, gasoline (and distillates) build and both WTI and RBOB dipped on the print.

Frontrunning: July 31

  • HSBC, miners lift European shares as dollar holds near lows (Reuters)
  • Republicans Face Tough Choice: Repeal Obamacare or Cut Taxes (BBG)
  • Trump’s Decisions Deepen Divide Among Republicans (WSJ)
  • Koch Brothers Move to Back White House’s Tax-Cut Plan (BBG)
  • Maduro Waits for U.S. Response After Violent Venezuela Vote (BBG)

Electric Vehicles No Threat To Oil Prices Anytime Soon

Hardly a day goes by without another media report about the impending demise of the Internal Combustion Engine as petroleum powered cars and trucks are replaced by uber-clean Electric Vehicles. It is just a matter of time before EVs start to materially reduce global oil demand thereby capping a meaningful oil price recovery now and creating an ever-shrinking industry in the future... Except it isn’t true.