November RBOB established a new six day high in overnight action but has been unable to hold those gains during the early morning hours. Some of the early support for November RBOB came from private inventory data Tuesday afternoon that showed a smaller than expected build in US supplies last week. Expectations for this morning's EIA report are for a build in the range of 750,000 to 1.0 million barrels. Meanwhile, there appears to be a measure of support for November RBOB coming from its steep discount compared to October RBOB of $0.165. There also appears to be a measure of support in the east coast gasoline market coming on tight supply concerns ahead of month-end. However, early morning reversal action and failure to hold above $2.84 resistance offers a negative headwind. It also raises the odds for a deeper slide back toward $2.7820.
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