Energy Prices Weaken

On August 27, 2013 by TradingDesk

As is traditional around Labor Day weekend, sans an imminent hurricane event, energy prices weakened yesterday with RBOB selling off a solid 5 ½ cents at the settle while ULSD was only down modestly by about a penny and a half. John Kerry’s press conference in response to the suspected use of chemical weapons resembled more of a “stern letter” than a Hawk’s declaration which could also account for some of the weakness in energy prices.

Gulf Coast physical markets seemed to wake up yesterday with conventional and reformulated blendstocks gaining 11.5 and 1.75 cents respectively in part due to busy Atlantic weather. Not to be left behind, Chicago gas grades also made large moves to the upside while most other markets remained modestly mixed.

The search for direction continues as gas and diesel drew back into familiar technical territory after pushing their resistance levels last week. Moderate downward moves into the weekend are widely expected, however, suspicious eyes still peruse the Middle East cluster and what Mother Nature is cooking up on the pond.

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