Energy Prices Moving Higher

On July 25, 2012 by TradingDesk

Most markets are pointed higher, recovering from a third straight day of selling, following a Wall Street Journal article that suggesting the FED was getting closer to action, and a member of the European Central Bank said it was time to add more dollars to their bailout fund. The Euro has bounced after setting another 2 year low yesterday, and US Treasury yields are gaining ground, as investors seem ready to peak their head out now that the 3 day storm of selling has passed.

Energy prices are moving higher, although the first two RBOB contracts remain in the red, as a major correction in what had been record high time spreads for gasoline continues to shake out. Physical supply for reformulated blends in the NY Harbor – where the gasoline futures contract settles – had been extremely tight, and now that product appears to be more readily available, we’re seeing a bit of reality set in on the futures. Support levels have held so far, and with equities pointing up, it seems likely that energy contracts will try and resume their typical seasonal rally.

CLICK HERE for a PDF of this morning’s charts

 

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