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Energy Spreads Are Going Bonkers

ByKevin Davitt
Published 11/14/2013, 01:59 PM
Updated 07/09/2023, 06:31 AM
NYF
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Gasoline futures are up about 8% in the past week and RBOB is DRAMATICALLY outperforming Heating Oil, WTI, and Brent Crude.

The spreads in the Energy complex have been incredibly volatile over the last year and particularly over the past month.

December Brent Crude expires today and the relationship with Dec WTI has moved with breathtaking velocity of late. Every $1.00 in this spread = $1,000 and there are days the spread is making bigger moves than the outrights. Tread lightly my friends.

6 Month Dec. Brent vs. Dec WTI:
6 Month Dec. Brent vs. Dec WTI
Here is a look at the relationship between RBOB and WTI over the past ( I pointed out in early October that 6.00 on the Crack spread was a multi year support level. I had NO idea it would move with this speed. We're back at levels we traded in February when RINs were going parabolic. CAREFUL.
RBOB vs. WTI
Be aware a gas pipeline exploded today outside of Dallas which is almost certainly playing a role in these moves.

Here's a look at the spread between Gasoline and Heating Oil:
Spread Between Gasoline And Heating Oil

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