Another Day, Another Mixed Bag for Energy Prices

On January 25, 2013 by TradingDesk

Another day, another mixed bag for energy prices. WTI and RBOB are continuing their steady march higher, while HO is attempting another small sell-off in sympathy with European Gasoil. RBOB and WTI are through their chart resistance and if HO can break above $3.10, all the pieces are in place for the spring price rally to begin. If you’re getting bored by the lack of price movement, you’re not alone, the WTI volatility index is at its lowest level since it began in 2007. If the pattern of the past 5 years continues however, expect this period of quiet trading to be the calm before a storm, rather than a new trend.

Yesterday’s DOE report showed that refined product demand in the US remains weak, and only a surprising 6% drop in refinery runs – a sign that the heavy spring maintenance season has begun – was able to keep inventories from continuing to build. Also, the correlations between equities and energy prices is beginning to return, which adds to the bullish price sentiment – despite the weak demand – as stocks continue to break through to new 5 year highs.

CLICK HERE for a PDF of today’s chart

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