November RBOB prices were the downside leader in the crude oil complex this morning and registered a lower low in the process. The latest price data from the EIA showed US gasoline prices lower for second week in a row, helped by downdraft in crude oil prices. Meanwhile, there appears a measure of support coming into the gasoline market from a tight supply situation in the New York Harbor market, which is expected to continue until new supplies arrive. The price action in November RBOB looks a bit toppy from a technical perspective, especially with a nearly 8% drop in open interest during last week's drive to $2.9654. Early morning weakness below $2.8875 offers the bears the advantage, with downside targeting coming in at $2.8350.
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