Energy Futures Pull Back From A Major Sell-Off

On March 21, 2014 by TradingDesk

A new battle of sanctions between Russia and the US has helped energy futures pull back from the brink of a major sell-off the past two days. Some traders are wondering what impact the sanctions on owners of one of the largest trading firms in the world might have on both physical and futures markets, while everyone else realized that Dayton had ruined their chances of early retirement.

Both RBOB and ULSD futures are testing technical resistance in the low 2.90s that had held support for weeks prior to the latest price drop. If those layers are broken charts suggest prices will test $3 near term, and remain stuck in our larger sideways trading range for the spring.

Ethanol prices continue to be the most entertaining story in physical markets, as they casually added another 16 cents to their parabolic move higher yesterday. Anecdotal evidence exists that the winter-storm/domestic crude production induced lack of rail car capacity is easing in some markets, but the price action suggests that the short squeeze is still on.

CLICK HERE for a PDF of today’s charts

Market Update Friday

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