RBOB Spikes

Talk about perfect timing. Earlier today I posted the link to RBN Energy on a fairly mundane story on RBOB.

I knew about RBOB in a general sense, but certainly not to the degree that RBN provided.

Now today, at OGJ -- RBOB spikes:

October reformulated stock for oxygenate blending jumped 19.77¢ to finish at $3.34/gal—the highest level since early April—as traders scrambled to cover short positions prior to expiration of that contract at the close of the Sept. 28 session on the New York market.  

In an amazing move, the contract soared nearly 30¢/gal near the end of the session. The exact cause of the sudden spike was unclear, but there was speculation of delayed gasoline deliveries in New York harbor, the specified point for physical deliveries. Gasoline stocks are reported to be low on the Atlantic Coast, while some refineries are in seasonal turnaround. However, the November RBOB contract gained only 2.29¢ to $2.92/gal in the same session. Heating oil for October delivery rose 1.21¢ to $3.17/gal.

Just in time for the election.

Hey, I will let folks know how this affects the price of gasoline at the service station across the street from where I hang my hat. I sleep with my boots on.

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And then this story out of California. Gasoline prices spike.

Spot gasoline in California advanced to a record against futures after Exxon Mobil Corp.’s Torrance refinery lost power and Chevron Corp. shut an oil pipeline that delivers crude to Bay Area refiners. 

California-blend gasoline, or Carbob, in Los Angeles jumped 30 cents to 75 cents a gallon above gasoline futures traded on the New York Mercantile Exchange at 4:16 p.m. East Coast time, according to data compiled by Bloomberg. 

That’s the fuel’s highest premium since at least November 2007, when Bloomberg began pricing there. Carbob in San Francisco gained 20 cents to 72 cents a gallon over futures, also its highest level since at least 2007.

As noted above, just in time for the election.