RBOB Gasoline Futures Up 17% YTD

April 27, 2018 8:16AM CDT

The national average for gas at the pump currently stands at $2.79 per gallon, jumping 6 cents this week. Where typical seasonal demand kicks in around Memorial Day, it looks like this year we are off to an earlier and stronger start. This comes as a surprise given that current daily gasoline demand stands at 9.083 million barrels per day compared to year ago levels of 9.206 million barrels. Also, current stock levels of gasoline stand at 236.807 million barrels versus the 5-year average of 227.461 which would indicate that a supply/demand isn’t the catalyst. Recent strength in the dollar along with another interest rate hike expected in June haven’t curbed this rally either. I would anticipate that a peak will be reached once the national average reaches $3/gallon which puts futures near $2.25/ gallon.

RJOB Gasoline Jun ’18 Daily Chart

RBOB Gasoline Jun '18 Daily Chart

RJO Futures | 222 South Riverside Plaza, Suite 1200 | Chicago, Illinois 60606 | United States
800.441.1616 | 312.373.5478

The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that RJO Futures believes to be reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgement at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades.

This material has been prepared by a sales or trading employee or agent of RJO Futures and is, or is in the nature of, a solicitation. This material is not a research report prepared by RJO Futures Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.

Distribution in some jurisdictions may be prohibited or restricted by law. Persons in possession of this communication indirectly should inform themselves about and observe any such prohibition or restrictions. To the extent that you have received this communication indirectly and solicitations are prohibited in your jurisdiction with registration, the market commentary in this communication should not be considered a solicitation.