Energy Prices Knocked Back Into Reality

On February 29, 2012 by TradingDesk

After settling at their highest levels since May of 2008, US Stock markets are poised to continue their run higher, following an initial GDP reading from Q4 that beat estimates, coming in at +3%. European markets are also rallying after the ECB completed a second refinancing program, injecting more than ½ Billion Euros into their struggling banking sector.

 

Energy prices have been knocked back into reality this week, as a lack of “supply fear” headlines has punished the record amount of long speculators that poured into the market in the past few weeks. European Brent crude oil and gasoil diesel have led US contracts lower, although technical support levels have not yet been tested. Today is the last day for March contracts, so all the action will be in April. On a related note, we will be celebrating Feb 29 with a screening of the Pirates of Penzance in the trading room this afternoon.

 

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