Energy Follows Equities’ Rally

On December 18, 2012 by TradingDesk

Equities staged an impressive rally Monday, as progress was predicted in the budget talks in Washington. WTI joined in on the rally, aided by news that Enterprise would be increasing flows on the Seaway pipeline, which runs south from the Cushing OK NYMEX delivery hub, to Houston-area refineries. RBOB and HO ignored the rally however, choosing yet again to take the lead from European grades which fell fractionally on the day. Volume remains weak as the combination of year-end preparations and waiting to see what may or may not come out of Washington puts many traders on hold.

Cash markets continued their recent trend of weakness, despite the 2nd fire in a week at Motiva’s much maligned new CDU in Pt. Arthur. Although gasoline differentials rebounded from record lows, values remain depressed in every cash market outside of the New York harbor which is still struggling to get back to normal after Sandy. Charts remain neutral, so without a major headline to provide direction, expect the aimless trading to continue.

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