Last week marked the first time in October that WTI crude fell below $45/bbl, and this morning it is currently trading down $0.56 at $44.03. RBOB is trading down $.0073 at $1.2963/gal and heating oil is also down $.0174 at $1.4370/gal. The Midwest markets seem to be fully operational once more. As the majority of refineries exit turnaround, which had plagued these markets in the early fall, product is now long. Concurrently, the Chicago cash market has seen a decrease of nearly 25 cents in the last week on ULSD, attributed to refiner selling, while CBOB and RBOB have both strengthened by nearly 19 cents and 9 cents respectively. NY Harbor on the other hand has seen some recent refiner issues. ULSD has strengthened 2 cents, CBOB 4 cents and RBOB 4 cents. The higher cash diffs should be short term due to plenty of accessible product in tanks.
Market watchers should keep their eyes and ears open this week. We are currently awaiting a United States Federal Reserve decision on interest rates yet again, and information and data regarding U.S. GDP (Gross Domestic Product) for the third quarter should be coming out this week as well.