Energy Prices Fractionally in the Green

On February 14, 2014 by TradingDesk

Refined product prices followed the lead of US stock markets Thursday, selling off early in the trading session, only to reverse course and end with modest gains for the day. The trend is continuing this morning, as both energy and equity prices are starting the day fractionally in the green.

The technical outlook has not changed for gasoline or diesel prices. RBOB futures maintain a bullish outlook, after again breaking above the 200 day moving average, with the next stop 8 cents above current values. ULSD has a neutral outlook at the moment, but is testing resistance at $3.05, with a break setting up another move into the $3.10-$3.15 range. Prompt values continue to be extremely volatile, as traders try to sort out the supply mess in PADD 1, with news yesterday that several cargoes of ULSD to be imported changing course due to plunging NY Harbor cash prices sending the March/April ULSD spread spiking towards 5 cents again.

WTI and Brent are both consolidating around pivotal technical levels around $100 and $108 respectively. With little in the way of headlines expected today, and many still digging out of the latest winter storm, it may be a quiet day of trading. That said, there’s a full moon tonight, and it’s Valentine’s day, so anything could happen.

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