Energy Futures Remain Stuck in Sideways Trading Range

On April 1, 2014 by TradingDesk

Energy prices finished the first quarter of 2014 trading on a weak note, but remain stuck in the sideways trading range. As we enter the 2nd quarter, the range of $2.90-$3.00 will be critical for both RBOB and ULSD in determining future direction.

A delicate balance between supply concerns in and around the Ukraine/Russia, Libya, Nigeria and Iraq will help keep sellers cautious as we approach the summer months, while bearish influences of surging US crude production and waning global demand will battle to push prices lower. The graph below shows how several major assets have fared so far this year.

Meanwhile, as petroleum-based energy products remain stuck in neutral, Ethanol prices have now reached their highest levels since 2006, when the elimination of MTBE as an oxygenate caught the market flat-footed. Many expect that these prices will collapse, as they have done following each prior price spike, although few are willing to bet when that will occur.

CLICK HERE for a PDF of today’s charts

Market Update (3)

Doc1

CBOT Ethanol Futures

Doc2

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