December RBOB prices traded sharply lower during the initial morning hours and broke down to their lowest level since August 3rd. It is possible that some of the weakness in the US gasoline comes on the hope that a rebound in US refining capacity, after a series of refinery closures, will quickly bolster US supply levels. Another source of weakness in the gasoline market appears to be coming from the transition to winter grade gasoline, with refiners marking down summer blends to move inventory.
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