Yesterday, WTI crude closed down $0.96/bbl to $28.46, HO closed down $0.0256/gal to $ $0.9087, and RBOB finished up $0.0050/gal to $1.0262. Today is no different from the recent trend, HO is currently trading down over $0.04/gal and RBOB down about $0.01/gal. WTI crude has hit below $27/gal. The market is currently awaiting the release of the API reports later today, and the DOE statistics tomorrow. Due to the holiday on Monday these are pushed back a day.
American consumers have been seeing gasoline around or below $2/gal, making everyone very happy except the major U.S. refiners. Bloomberg reports, with the price of oil continuing to fall, refining margins or crack spreads are also narrowing. The last quarter in 2015 had the steepest decline in refining margins in eight years. As prices continue to drop lower in 2016, it will continue to put pressure on the profit for the large refiners.
The latest reports show Winter Storm Jonas will hit the North East sometime Friday and will last into Sunday. The image below indicates how much snow is expected for the area effected. This first winter storm of the year could help boost demand for heating oil.