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Economic warfare, Oil and the price of Gasoline


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Interesting times indeed for the price of Gasoline...after last Thursdays short squeeze in the May contract, the fun and games and general shenanigans continue unabated.  The price of Gasoline is disappearing high into the ether. But why is that? Very good question, as the price of Brent and WTI have not blown beyond their March highs or even close to it. Indeed WTI is barely $105 ....It would appear there are those with ulterior motives where the price of Gasoline is concerned, as the usual correlation with the price of Oil has gone the way of a great deal of Russian tanks in Ukraine...(blown up). 

Why would there be price manipulation in the New York contracts of gasoline? Or prior to that Oil? Political capital? Old fashioned economic warfare?  For example: the Nymex RB01 futures gasoline contract usually moves in tandem to the price of WTI, unusually this is not the case. The correlation has been hiked by 20%+. Is there a deficit of Gasoline? Well no, not as compared to the deficit in long term Oil reserves or Distillates and WTI. There is a small deficit of aprox 4 million barrels. Not enough to prompt the current squeeze in price. Is the price reflected in the Chicago exchange? Again no, Chicago are buying Gasoline at a 23 cent discount to benchmark. It would appear this squeeze is coming from New York.  Are refineries  having problems? Again to the negative. Refineries are running and making high margins on large volumes. So for why this considerable squeeze? Not supply, not stocks, no shortage, so why is the price headed to the moooon? It would appear Mr and Mrs and even Miss America and Global citizens elsewhere are being squeezed for cash for political and financial motives. This is not market efficiencies in action, there is something more. Gasoline is over  $3.50....it's March high was a very brief $3.85 before crashing down when WTI reached $130....currently WTI is $103.87 and Gasoline is $3.50.....all is not well in the state of Denmark it seems...or even spot and futures contracts on NYMEX...

We have seen short squeezes before, made famous by Gamestop.....there appears to be one happening now with Gasoline. Gamestop was a short squeeze instigated by millennials keen to stick it to the "man", Gasoline short squeeze is being instigated by a completely different cast of bad actors.  

 

 

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