Another big drop in gasoline stocks last week and record-high Cushing crude stocks should keep the May RBOB crack spread moving higher. It's up another $1.12/barrel so far, to more than $28/barrel.
My comments from last week still hold true, about the "real" margins not being anywhere near as strong as that NYMEX crack spread would imply.
PADD III gasoline production dropped sharply last week, as did PADD V (West Coast). Gasoline demand cover is now down to the lowest level since August 2005, and inventories are the lowest since October 2005.
I'm just glad I don't own a car.
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