Energy Futures Took A Break Monday To Rally This Morning

On December 24, 2013 by TradingDesk

Energy futures took a break from their rally Monday and were quiet overnight, but have risen in the past few minutes after the release of the US Durable Goods report for November. The report showed a total increase of 3.5% for the month – 4.5% when excluding aircraft – which outpaced estimates. With little else in the news today – and fewer yet around to hear it – it may be enough to keep the upward momentum for now.

RBOB just broke above $2.80, and is poised to test the 200 day moving average, which looks to be a pivot point between another major move to the upside, and falling back into the $2.70s. This is typically a weak time of the year for gasoline, since EPA requirements (specifically allowing higher RVP) allow for increased gas production and driving demand slows in the winter. While Gulf Coast and Midwestern markets remain steeply discounted to RBOB, rumors of refinery issues on the East Coast & in Europe have helped the contract rally by nearly 20 cents in the past two weeks. ULSD continues to lag, but charts suggest that if the HO contract can break resistance in the $3.08 range, there’s a good chance we’ll see $3.20 early in 2014.

Markets are closing an hour early today, and will be shut all day tomorrow. Merry Christmas.

CLICK HERE for a PDF of this morning’s charts

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