Energy Futures Stuck In Limbo

On April 27, 2012 by TradingDesk

Global markets were relatively quiet overnight, largely shrugging off another S&P downgrade of Spain, and news that Japan’s central bank was injecting another $100 billion plus to stimulate their struggling economy. US GDP just reported for Q1 came in below estimates at 2.2%, which has sparked some modest selling. Most financial and commodity markets have performed extremely well this week, despite a rash of negative economic news, and today’s response to lackluster GDP will give us a good look into the market’s mood heading into May.

Energy futures remain stuck in limbo, with WTI and HO now ready to challenge the top end of their recent trading ranges while RBOB lags behind. Seasonal trends suggest we’re due for a 10-20% drop in prices over the next few months, although it is still too early to say that prices have peaked, as May has often seen the highest prices of the year.

CLICK HERE for a PDF of this morning’s charts.



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