U.S. gasoline futures once again dragged the energy complex lower on Thursday, plunging more than 2 percent. They are now down 8.5 percent this month and 3 percent on the year.
The market had expected gasoline supplies to tighten heading into the peak summer driving season, but has been disappointed thus far, according to John Kilduff, founding partner at energy hedge fund Again Capital.
“This is a big problem for the complex — that the gas market could become glutted again. Demand hasn’t been spectacular so it’s a bad combination, to see this aggressive refining activity earlier than we normally see it,” he said.
“We’re really setting up for failure here in terms of price strength given what’s happening here.”