Don't Ignore This Chart!

Relative strength in Gasoline and Brent Lifts Two Refiners


WTI Crude ($WTIC) remains relatively subdued, but Brent ($BRENT) and Gasoline ($GASO) have been moving higher the last several weeks. The top chart shows gasoline relative to crude using a ratio plot ($GASO:$WTIC), and the second chart shows the BRENT-WTI spread ($BRENT-$WTIC). Both rose sharply from mid February to early March. This means gasoline prices are rising relative to oil prices and the difference between Brent and WTI Crude is widening. These developments are bullish for refiners and many refining stocks are up sharply this year. The chart also shows Holly Frontier (HFC) and Western Refining (WNR) with sharp advances the last six weeks. Note that the Brent-WTI spread took a hit on Monday and this affected these two stocks rather dramatically.

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Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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