Action In Energy Futures Stalls Out

On March 11, 2014 by TradingDesk

The action in energy futures has stalled out, after prices failed again to break chart support amid a mixed bag of headlines Monday. Depending on which side you believe, there may or may not be a tanker full of crude oil leaving a Libyan rebel-held port heading for North Korea this morning, which may or may not have been fired on by the Libyan Navy. If only someone had a camcorder we might be able to settle the dispute.

Technical studies continue to give conflicting signals as the winter premium is erased from Nat Gas, ULSD and WTI, while Brent and RBOB hold above support and threaten another move higher. The $2.90s have now set the boundaries for future price action, and we will just have to wait and see if RBOB and ULSD will break back above $3 and salvage a spring rally, or drop into the $2.80s and make another major push lower.

WTI meanwhile appears ready to test $100, which will create an interesting situation for the record amount of speculative money betting on higher prices. If that psychologically important level breaks down, the rush for the exits could cause a wave of selling across all contracts over the next few weeks.

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