Energy Complex Mimicked Equities Yesterday

On April 8, 2014 by TradingDesk

The energy complex mimicked equities and the dollar yesterday as they continued to sell with conviction due to worries about European bank stimulus. However, news of renewed tensions in Ukraine this morning reversed those losses, and then some, with gas and diesel hanging on above $2.90/gal and crude above $100/bbl. Brent and WTI are torn between bullish effect of Russian aggression and the downward pressure of Libya returning its crude supplies to the market. For now, it seems, whichever news is louder, Putin or Libyan restarts, may decide price direction in the short term.

NYMEX RBOB settled above a couple important technical levels yesterday around the 2.91 level, which, if broken, could show a price drop of over a nickel. HO, on the other hand, is seeing more ceilings than floors with a cluster of resistance levels around 2.91.

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