Well.. We did see Portland spot close below the $1.56 level at $1.5315. Crude oil was $2.34 lower and nearby NYMEX diesel was down 6 cents.
Normally when we see this kind of trade we see mid-day diesel rack changes… so far, only for gasoline which was also down over 5 cents.
For the past two weeks, WTI crude oil has flirted with, and broke through, key technical support levels. However, until today, the big sell-off
that was predicted if those levels were breached had not been witnessed. A number of times in the past few weeks, trade had breached
support levels only to rebound into the close each day. That was not the case today, as WTI, Heating Oil, and RBOB futures all finished the
session near the trading session lows. Trade is now at or below pre OPEC/non-OPEC agreement prices on WTI and heating oil, and is
approaching those levels on gasoline. There is growing concern that an extension of the OPEC/non-OPEC agreement will not be enough
to rebalance the market by the end of 2017, which paints a bleak picture for market bulls.