Crude Prices Shocked Into Negative Territory

On September 26, 2013 by TradingDesk

A surprise draw in Cushing stocks, reported by the DOE, shocked crude prices into negative territory after spending early yesterday morning up with refined products. New hopes for US-Iran negotiations broke from the Rouhani camp and increases in Libya’s recovering supply structure added additional selling pressure to crude.

PADD 3 (USGC) reported almost a 5% decrease in refinery runs due to its gas grade’s record discount to RBOB for this time of the year. Although these production cutbacks were predictable, they did bump prices after the numbers were released only to be brought back to pre-DOE levels later in the afternoon. RBOB settled up $.0137 to 2.6739, ULSD up $.0121 to 2.9731. The move keeps refined product prices about a nickel away from significant technical support and resistance levels.

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