March RBOB prices began on a positive note Sunday evening and seemed to draft support from higher US West Coast cash markets. While futures prices experienced negative technical action on Friday, Los Angeles cash prices surged nearly $0.07 per gallon on reports of a short squeeze after a broker was caught short ahead of the weekend. There were also indications that gasoline supplies in the region could decline in coming weeks, as refiners in Los Angeles and San Francisco undergo planned maintenance. However, the demand side of the ledger, especially in the Northeast and Midwest, remains sluggish in the face of extreme cold temperatures, which has negatively impacted gasoline demand. The Commitments of Traders Futures and Options report as of February 1st showed non-commercial traders were net long 72,134 contracts, an increase of 3,217. Non-commercial and nonreportable traders combined held a net long position of 83,630, an increase of 5,594 in the net long positioning.
Join the Discussion