It’s a red day across most of the globe, after negative economic headlines from Asia and Europe have flipped the risk off switch. Chinese PMI shows that factory activity continues to contract, Spain is officially in a recession, and Euro-zone debt hit a record high.
Energy prices are slipping along with equities and the Euro, although losses have been tempered by a Reuters headline that said Iran’s largest oil terminal was hit by a suspected cyber-attack. The severity of this attack may provide direction for prices, at least until the FED meeting. The speculative long interest in RBOB, which has remained near record levels for months, fell again last week as the contract dropped 20 cents. Gasoline futures remain the weakest technically, and are targeting a move to $3.00. HO futures continue to hold above support in the $3.9-$3.10 range.