Speculative Interest In Energy Markets Remains Near Record Levels

On October 30, 2013 by TradingDesk

WTI crude is down nearly $1/barrel this morning, after the API reported another 5 million + barrel build in domestic stocks last night. Brent crude is moving higher, as Libya’s government failed to negotiate an end to the protests that have shuttered nearly 1 million barrels/day of crude oil exports. RBOB and ULSD are left stuck in the middle of the crude tug of war, and are both fractionally higher on the day.

Similar to the fundamental situation, technical indicators are mixed, with both bullish and bearish signals appearing.

ULSD will need to break back above $3 for any sustained rally to form, with $2.90 providing support. RBOB has a similar range between $2.55 and $2.65 that it must break to find direction.

It will be a busy news day with the DOE report out this morning and the FOMC announcement this afternoon. The S&P 500 remains at record highs as equity investors continue to bet on accommodative monetary policy from the FED. Although the correlation between stocks and energy prices has broken down in 2013, don’t be surprised to see the two move in tandem this afternoon, as speculative interest in energy markets remains near record levels.

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