Another Quiet Morning

On June 27, 2012 by TradingDesk

It’s another quiet morning in financial markets, with most markets fractionally in the green ahead of the widely anticipate EU Summit tomorrow. However, given that it’s the 20th such summit since the Euro financial concerns started popping up a few years ago, the probability of a major change resulting from the meeting seems somewhat farfetched.

With the calming of financial markets, energy prices have reverted to concerning themselves with potential fundamental issues, most notably a strike by Norwegian oil workers, which could delay shipments to the Brent crude oil hub, and the July 1 embargo of Iranian product. These issues combined to push Brent crude above $93 yesterday, off a low of $88 on Friday, and US products followed along for the ride. WTI was again unable to join in on the rally, and remains stuck below $80 as domestic stockpiles continue to grow. Today’s DOE report will be closely watched to see how Motiva’s 300mb/d $10 billion CDU debacle affected the total refining online in PADD 3. Spot prices have reacted as though the volume wasn’t immediately replaceable, we’ll see what the stats say this morning.

For the near future, RBOB and HO prices seem poised to enter another period of aimless trade, with a fairly wide range between $2.50 and $2.70, with both the charts and fundamental indicators giving mixed signals.

CLICK HERE for a PDF of today’s chart

 

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