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Gas industry

Gasoline Futures Soar Amid Colonial Pipeline Concerns

Strategic Insights

— 1 min read

Panic over the Colonial Pipeline Co. accident led to skyrocketing gasoline futures, with November delivery prices jumping 2.59% to 52.46 cents/gallon on the New York Mercantile Exchange. This marks the contract's highest close since August, just as the driving season was peaking. The Environmental Protection Agency (EPA) reiterated its stance on reformulated gasoline (RFG) despite the issues in Houston, with Mary Smith, acting director of EPA's office of mobile sources, restating the agency's position and announcing contingency plans for product shortfalls.

Key Takeaways:

  • Gasoline futures for November delivery surged 2.59% to 52.46 cents/gallon, the contract's highest close since August.
  • The December contract for reformulated gasoline (RFG) rallied 1.12% to close at 58.37 cents/gallon.
  • November No. 2 heating oil contracts rose 0.67% to 49.16 cents/gallon, while December contracts rallied 0.59% to 49.43 cents/gallon.
  • Natural gas futures turned bullish, with November futures closing 7.3% higher at $1.683/MMBTU, and December futures rising 6.6% to $1.934/MMBTU.
  • Light, sweet crude for December rose 7% to $17.45/bbl.
  • November Brent rose 14% to $16.42/bbl on London's International Petroleum Exchange.
  • Nymex raised margins on heating oil, unleaded gasoline, and crack-spread contracts to mitigate price volatility, with increases ranging from $405 to $612.
  • Mary Smith, acting director of EPA's office of mobile sources, reiterated the agency's stance on RFG and announced contingency plans for product shortfalls.

Statistics:

  • November RFG contract: 52.46 cents/gallon (2.59% increase)
  • December RFG contract: 58.37 cents/gallon (1.12% increase)
  • November No. 2 heating oil contract: 49.16 cents/gallon (0.67% increase)
  • December natural gas contract: $1.934/MMBTU (6.6% increase)
  • November natural gas contract: $1.683/MMBTU (7.3% increase)
  • December crude oil contract: $17.45/bbl (7% increase)
  • November Brent contract: $16.42/bbl (14% increase)

Sources:

  • "Product Futures Soar on Pipeline Woes"

+ Source: Reuters

+ Date: None provided

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