Gas prices in the US hit three-month highs as the Pennsylvania refinery Delta Air Lines Inc. shuts down units for work next week. The refinery produces 185K barrels per day but will be down for maintenance on an isocracker, according to the refinery’s spokesperson.
East coast inventories fell 1.3 percent and imports dropped 15 percent in the week ending on December 13. Gas futures are currently up .94 percent to $2.8406 per gallon and reached the highest intraday level since September 9. Month-to-date, gas futures have gained 5.5 percent but only up .6 percent year-to-date.
Platinum completed the weekly triangle pattern to the downside initiated in “Platinum Trading Within a Weekly Triangle,” published on November 20. “If platinum breaks through the weekly triangle support, it will trade down to the supporting ascending triangle at $1,380. This would be platinum’s last line of defense before a potential decline to $1,330 per ounce – prices not seen since July,” I mentioned given the price action. Platinum did take it a step further with the slump of precious metals and fell to $1,311.50 per ounce.
Price action did rally since the lows as traders are speculating on continued global economic rebound and that demand will become a symptom of this. According to a Bloomberg survey, platinum is expected to surpass the $1,650 per ounce mark based on demand outpacing the supply in 2014. However, Johnson Matthey PLC, a renowned refiner, said that demand exceed supply this year, yet platinum still was not immune to the woes of being a precious metal.
However, platinum does benefit from its industrial use. Holdings of exchange-traded products (ETPs) backed by platinum increased 77.98 metric tons on December 20.
Platinum is currently trading $27 per ounce higher, or two percent, to $1,363.60 per ounce in midday US trade.