Energy Prices Heading Back Higher

On February 22, 2013 by TradingDesk

Energy prices are heading back higher this morning, led once again by Brent crude prices, up nearly $1 after a positive read on the German business climate allayed some fears of further financial crisis for the moment. RBOB prices now stand 10 cents higher than they were at this time yesterday, with an 11% drop in Padd 1 refining throughput in yesterday’s DOE report taking much of the blame. With both RBOB and HO prices holding support at $3, and $3.10 respectively, it remains too soon to say that this week’s drop marks the end of the 2013 price rally. Meanwhile, Brent crude is sitting on a trend line that has supported a $25 rally since last June. With US products still tending to follow the European grade, Brent’s reaction to hitting that support level may determine our price direction over the next several weeks.

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