Equities Hit Record Highs
Equities hit record highs yesterday on the back on international trade optimism and are poised to open in the green again today. The buying pressure is spilling over into energy prices amid warnings from OPEC, published in its World Oil Outlook (WOO), that non-OPEC supply will outpace global demand for the next five years. Echoing rig count and production data, the cartel cites US drilling efficiency as the main driver for the supply-demand disparity.
Just in time for the EIA to publish a note about the recent decline in West Coast gasoline prices, the LA spot market has returned to levels last seen in mid-October, about 70 cents higher than other US markets. The latest installment of the West Coast energy infrastructure saga has PBF’s Torrance refinery unexpectedly flaring after a power outage yesterday morning.
The prompt month WTI crude oil futures contract is challenging its technically significant 200-day moving average this morning: $57.19 is the level it will be trying to settle above today. A breakout on the charts could lead the benchmark up to the $60 range in short order. The December RBOB on the other hand has sundry resistance levels it will need to best before making a significant run: $1.71 looks to be the price to beat before the path forward opens up.