Oil prices reclaimed their losses, yesterday, but are reclaiming their gains this morning. While the inventory report this week was mostly supportive, the fact that the crude oil inventory plunge normalized undermined the strength of the rally. Also, gasoline is under pressure from a plunge in the value of renewable fuel credits or RINs that are generated when ethanol meets RBOB and heads to the corner gas station. It is a complicated daisy-chain that we don’t have room to flesh out here, but suffice to say that the ethanol mandate is not working out so well, and the volatility in the pricing of RINs is outsized
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