The New Year brings change
February 4, 2009
Jan. 16—The first couple weeks of 2009 seem to indicate that previous trading patterns and relationships may be old hat and new patterns may be in store for the first several months of the year. Through most of 2008, RBOB gasoline and crude oil prices seemed to be joined at the hip in that each market followed the others pattern to a tee. However, starting in January, RBOB gasoline prices seem to have deviated from the normal crude oil pattern. This seems to be a combination of expected increased summer demand for gasoline as well as refiners and retailers trying to regain margins that were lost through the second half of 2008. Gasoline prices may continue to trade on their own merit in the coming weeks and months.
Recently, ethanol prices have also deviated from normal trading patterns as corn prices have shown choppy patterns and the lack of market demand for ethanol has limited the ability to move in the same direction. This results in significantly reduced product margins for most producers. The financial challenges currently facing ethanol producers will leave overall supply levels of ethanol produced in question for much of 2009.
Recently, ethanol prices have also deviated from normal trading patterns as corn prices have shown choppy patterns and the lack of market demand for ethanol has limited the ability to move in the same direction. This results in significantly reduced product margins for most producers. The financial challenges currently facing ethanol producers will leave overall supply levels of ethanol produced in question for much of 2009.
Advertisement
Advertisement
Upcoming Events
