Sunday Night Globex Open for Energy
A slew of bullish headlines this weekend has caused energy futures to surge at the electronic open with spot RBOB leading the pack higher with over 10 cents of gains ($3.1795) while heating oil has climbed a more moderate 4.15 cents to $3.1515. WTI futures is up “only” 70 cents to $96.85. Volatility has already been extreme but the clear trend for now is higher.
This is because of oncoming Tropical Storm Isaac and the likelihood that it will reach the USGC refining hub with hurricane strength next week, talk that China will impose new stimulus measures to help boost export activity, and, most importantly, the massive refinery explosion and subsequent fire at PDVSA’s massive Amuay refinery in Venezuela.
This issue comes on the heels of a slew of refinery problems seen last week here in the U.S. They include problems at ExxonMobil’s Beaumont, TX refinery, new minor problems on two separate facilities in California, and issues with Petrobras’ Pasadena, TX refinery.
Stay tuned as this type of volatility on a thinly traded Sunday evening should make Monday all the more interesting.