A Busy Day for Trading

On June 19, 2013 by TradingDesk

WTI Crude moved to a fresh 9-month high overnight, following another large drawdown of 4.3 million barrels in domestic stocks reported by the API yesterday. Refined products are following crude’s lead and are once again on the cusp of a major technical breakout that could send prices another 20 cents higher over the next few weeks. Today will be a busy day for trading, with the DOE report release at 9:30 central, then the FED’s announcement a couple of hours later. Our pattern over the past year has been to rally ahead of FED meetings (just as we’ve done so far this week) only to sell off the day following the announcement. If that trend holds, it’s likely that energy futures will return to the middle of the trading range that has held prices since March. If the FOMC is more dovish than anticipated however, expect our 2013 highs around $3.26 for both RBOB and ULSD to be tested this summer.

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