Ron2008

Gas Prices Rise, but the Industry Approaches Growth Stagnation

Gasoline inventories are going down because there is less demand and 15 year highs in inventory. But when the futures markets see a lower gas inventory number they raise the price of crude. So the RBOB futures have to go up to keep the crack from being negative. And when the gasoline price goes up in further erodes demand. So the refineries make less gasoline. Which causes inventory to drop. Which causes crude to go higher. Which causes RBOB futures to go higher.

And so on and so on.

If the weather is normal this Jun-Jul and there are no major damaging hurricanes, there will be a huge crash in energy prices this August.