Prices Resume Downward Trend

On September 20, 2013 by TradingDesk

Yesterday prices resumed their downward trend they set earlier in the week that was interrupted by the Fed’s decision to keep giving away money. RBOB gave back about half of Wednesday’s gain, HO gave it all back and the Brent-WTI spread stalled around 2 dollars. Lack of relevant news out of the middle east or US policy (monetarily or otherwise) failed to provide support for an extension of Wednesday’s gains. API’s report showing a large scale break-down in petroleum demand may have also assisted a general decline in refined product prices.

Tropical storm Humberto dissipated out over the western Atlantic yesterday as attentions are now turning to a large tropical depression in the Gulf. NHC asserts that it has a 60% chance to turn into a tropical cyclone with some projections taking it right into the refining heart of the US.

RBOB has about a nickel left to fall in order to test this year’s lows and about 7 cents to climb before reaching a major resistance level. ULSD will hit support in the high 2.90s with resistance sitting 7 cents away as well. Interaction with these levels combined with oversea developments will most likely decide further price direction.

CLICK HERE for a PDF of today’s chart

Market Update (3)

Comments are closed.