We continue to see a downward trend as oil prices in the U.S. have declined for their eighth consecutive week. This is the longest streak since 1986 and may be due to concerns over the decrease in manufacturing in China, the largest energy consumer in the world.
So far this week, RBOB is down more than 10cts and over the course of the last six days the average loss was nearly 4cts. This decline is expected to last through the end of the week. The October contract is also under pressure with the contract off about 2cts at $1.373/gal. Further weakening RBOB, BP Whiting is projected to restart this weekend with a temporary fix until they receive parts. This is much sooner than expected.
Heating oil is also extremely weak and has dropped subsequently. It is oversold and could be due for a bounce back in the near future.
OPEC basket prices, which are calculated on a daily basis, illustrate how far the market has slid over the past years. Basket prices are a weighted average of the various crude grades produced by OPEC. Key prices can be found in the table below.