A Wave Of Selling On Energy

On March 20, 2013 by TradingDesk

Refined products finally broke the support that had propped up prices this month, and a wave of selling soon followed. A late afternoon rally in stocks helped limit the damage, but when the dust settled RBOB was down more than 8 cents, and HO more than 6, their lowest levels since January. Stocks are heading higher this morning, on hopes that the FED’s statement due out at 1pm central today will soften the recent hawkish tone which has many worried that the QE party may end early.

The drama in Europe continues to play out, and the EUR/USD is trading at its lowest level of the year, as it becomes increasingly obvious the leaders there are simply making things up as they go. The currency weakness is weighing heavily on Brent crude prices, which also fell to its lows for the year. The tendency for US Products to follow the Brent crude contract helped strengthen prices for much of the past year, but is now having the opposite effect. If Brent breaks below $107, expect both RBOB and HO to follow with more large losses.

April RBOB – The trend line finally broke, pushing prices nearly 10 cents lower.

CLICK HERE for a PDF of this morning’s charts

 

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