It’s Christmas Eve and Energy Prices Are Seeing Modest Increases

It’s Christmas eve and energy prices are seeing modest increases while liquidity quickly dries up ahead of the holiday.

Futures will settle and close early today and be closed tomorrow, with normal trading days scheduled for Thursday and Friday, although volumes are expected to remain light. The lack of volume can create some volatility if there’s anything to get excited about later in the week, but it can also lead to very small moves like we saw in Monday’s session if there aren’t any meaningful headlines to press the action.

If you have any concerns about family or friends grilling you about your job this week, see the charts below and be sure to remind them that gasoline in the US is not only cheaper now than it was 15 years ago, its emissions have been reduced as well.

LA gasoline traders shrugged off the report of a Marathon Wilmington refinery upset over the weekend, with CARBOB differentials dropping more than a nickel in Monday’s trading after rallying 25 cents last week. Diesel differentials did see a bit of buying, pushing values up more than 3 cents on the day.

Valero reported a 2nd flaring event in 3 days at its Three Rivers TX refinery Monday as operators struggle to get units back to normal production.

Not giving up yet: 5 senators introduced a bill to extend the biodiesel blenders tax credit that’s set to expire in a week and be replaced by the Clean Fuel Production Credit that sets a higher bar for producers, doesn’t apply to imports, and increases incentives for SAF over Bio and RD. If and when this new bill moves forward for voting in the Senate or the House remains uncertain.