Energy Futures Down Roughly 1% This Morning

On March 17, 2014 by TradingDesk

Energy futures are down roughly 1% this morning, and global equities are moving higher, after Russia and the Ukraine managed to make it through the weekend without any (reported) violence. News that US Navy Seals had seized the Libyan oil tanker that rebels had commandeered last week does not seem to be having an influence on commodity prices, although it’s suggested that the movie script has already been sold.

The overnight drop in energy prices wiped out Friday’s bounce, and puts values back on the brink of a major move lower. WTI/Brent and ULSD futures are all challenging the bullish trend lines that have held under all attempted sell-offs since the summer of 2012, while RBOB is threatening a 20 cent drop should support at $2.90 fall.

Large speculative traders cut back their net-long positions in WTI/Brent and ULSD last week, and many oil analysts suggest the length remaining could be a cause for lower prices if those positions (which are assumed to be leveraged) are forced to liquidate following the sell-off that will create margin calls for anyone betting on higher prices.

CLICK HERE for a PDF of this morning’s charts

Market UpdateWTI non comm

WTI managed

Brent managed

HO Non comm

HO Manged netRBOB NON

RBOB managed

 

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