By Tyler Durden
RBOB Gasoline futures tumbled to their lowest level in almost a week overnnight as several US Gulf Coast refineries reported their plans to restart operations after the devastation of Hurricane Harvey forced them to shutdown.
While about one-fifth of U.S. refining capacity is halted, according to data compiled by Bloomberg, some plants including those operated by Citgo Petroleum Corp. and Marathon Petroleum Corp. are preparing to restart.
The Oct ’17 contract was down as much as 4% earlier before a modest bounce.
Moreover, compared to the squeeze in the September contract, RBOB prices have really tumbled…
Of course, this rather spoils Janet Yellen’s transitory hopes for a burst of inflation to help her case when she next raises rates and while concerns had risen that higher gas prices could derail the Trump economy, it appears those risks are overblown. As The Hill reports,
Stephen Moore, a fellow at the Heritage Foundation and former Trump transition energy adviser, said “the negative effect will be not pretty.”
“We’re talking about maybe knocking half a percent, or one percent, off GDP for a quarter or two, higher gas prices for sure, because Houston is the energy capital of the country. … So all those …read more