Reformulated Blendstock for Oxygenate Blending

Limit up, limit down.

What the heck is RBOB anyway? Are they going to dump a truckload of soybeans on your front lawn if you click the wrong button? Come to think of it, maybe you should just stick to your comfort zone.

Or you can break out of it with The Futures Rundown.

The Futures Rundown is here to help you make sense of these scary markets.

Number four, nonfat dry milk, up 63% for the year.

Number three, it's Brent, up 66%.

Number two, it's RBOB, up 92%.

And the big dog yet again, heating oil, up 125%.

Gulf Coast is very strong.

RBOB on the back of the, the hurricane risk, uh, has continued to rally.

We also see on a cash lift perspective, reformate levels that you have never seen, extremely tight octanes in the US.

We had the stock releases yesterday, uh, with, uh, a draw of one point seven million barrels, I think it was, uh, which is adding more fuel to the fire.

No, everything from ARA into the east of Suez is completely shut down right now.

Uh, the only one is some sort of tension around South Africa or, uh, Durban, but that's the only thing I see right now.

So on gasoline, I would say it's supportive, very strong RBOB, and the momentum is there.

I would definitely not short that right now.

Brent's also down more than 1% right now, trading just below 100 bucks a barrel, around 99 right now.

Uh, RBOB gasoline, as I mentioned, also lower.

Uh, and the diesel contract, the heating oil contract, is down another 2% this morning.

We'll have more on that as well momentarily, but let's first see how Europe and Asia are shaping up.

Uh, also gonna get a check on what we're seeing in the energy complex.

RBOB gasoline at its lowest level in about a month, and you can see crude prices, uh, under a bit of pressure again this morning, down 1% for WTI, trading around $90 a barrel.

And Brent crude down fractionally right now, trading around $101 a barrel.

Uh, for global markets, it's a positive start to the trading week in Asia that was led by the Nikkei.

I mean, that's a hefty move in response to this.

RBOB gasoline futures also down similarly here.

Amina Barker from Keppler was on my show Morning Call earlier today, and one of the points she made, and I think this is what you're gonna hear more of in response to this, assuming this deal and the details of this deal continue to come out here, is that, yes, this is gonna push prices down near term.

Longer term, it's going to buoy prices, right? Because you're gonna have to refill all of those inventories on top of all the other inventories we've been talking about, and you need to find more and more ways to restore and expand refining capacity globally here.