The early morning price action in March RBOB was higher, following a rally Monday on signs of tightening West Coast supplies. Some traders indicated that prices in the California region were significantly higher as refiners' transitioned from winter to summer gasoline blends. In addition to the slightly lower than expected inflation data in China, India's government indicated that they would shoulder nearly half the losses incurred by their fuel-subsidy as crude oil prices top $100. The Indian government indicated that they were not ready to boost commodity prices on fears of stoking inflation. Expectations for this week's EIA inventory report are for stocks to remain near 20-year highs.
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