In addition to the early attempt to bounce crude oil prices, the gasoline market saw a slight improvement in gasoline demand in Europe overnight and that has probably resulted some technical short covering action. Like crude oil, RBOB held a rather lofty non-commercial and non-reportable net long position in excess of 61,000 contracts in the last COT report. While August RBOB to this week's low was down another 11 cents a gallon from where the COT report was measured, many traders don't think that RBOB is fully liquidated technically. Adding to the worsening macro economic views and seeing only minimal refinery issues, it would not appear that unleaded market has the fortitude to make this week's lows a major sustainable one. In fact, after seeing rather dismal June US gasoline demand predictions early in the week and seeing a further deterioration of macro economic views by many traders it is possible that RBOB is destined to return the October 2011 weekly chart lows of $2.43. However, as in the crude oil market, the trade is at least short term technically oversold and there is the potential for a hurricane over the weekend in the Gulf.
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