Prices for March 2nd, 2010
| HEATING OIL cents per gallon | | MONTH | HIGH | LOW | SETTLE | CHANGE | | APR | 208.60 | 201.59 | 205.61 | up 03.26 | | MAY | 209.57 | 202.72 | 206.66 | up 03.18 | | JUN | 210.66 | 204.41 | 207.83 | up 03.00 | | JUL | 211.28 | 205.92 | 209.51 | up 02.89 | | AUG | 213.39 | 207.73 | 211.16 | up 02.71 | | SEP | 214.67 | 209.73 | 213.06 | up 02.66 | | OCT | 218.07 | 216.50 | 215.31 | up 02.62 | | NOV | 217.04 | 215.62 | 217.61 | up 02.60 | | DEC | 222.68 | 217.15 | 219.94 | up 02.58 | | JAN | 224.91 | 222.65 | 222.19 | up 02.53 | | FEB | 225.31 | 223.90 | 223.39 | up 02.43 | | MAR | 224.85 | 224.85 | 223.29 | up 02.33 | | Estimated Volume (day before) total all prev day 79,003 | | NYMEX CRUDE OIL dollars per barrel | | MONTH | HIGH | LOW | SETTLE | CHANGE | | APR | 80.95 | 78.26 | 79.68 | up 00.98 | | MAY | 81.32 | 78.67 | 80.06 | up 00.98 | | JUN | 81.71 | 79.11 | 80.44 | up 00.96 | | JUL | 82.01 | 79.59 | 80.81 | up 00.95 | | AUG | 82.30 | 80.45 | 81.11 | up 00.93 | | SEP | 82.58 | 80.28 | 81.38 | up 00.91 | | | | | | | | | Estimated Volume… 508,010 Opec Basket…$74.60 dn $0.06
Prompt #2 Oil NYH 88..-1.30 to -1.15, 74 Lo S…+2.25 to +2.50
US Gulf 88 grade…-4.50 to -4.00, 74 grade Lo S…+1.65 to +1.90 Group .........+0.00 to +1.00 Lo S.....+0.00 to +1.00
Chicago ......-1.50 to -0.50 cash quotes by Dow Jones | | | |
| NYMEX RBOB GASOLINE cents per gallon | | MONTH | HIGH | LOW | SETTLE | CHANGE | | APR | 222.24 | 215.50 | 219.66 | up 04.10 | | MAY | 222.79 | 216.35 | 220.26 | up 03.89 | | JUN | 222.72 | 216.49 | 220.09 | up 03.72 | | JUL | 221.64 | 216.69 | 219.46 | up 03.62 | | AUG | 220.20 | 216.76 | 218.62 | up 03.48 | | SEP | 219.98 | 215.48 | 217.50 | up 03.29 | | OCT | 207.26 | 205.11 | 207.06 | up 03.02 | | NOV | 206.27 | 205.87 | 206.06 | up 02.90 | | Estimated RB Volume day before 83,094 | | NYMEX NATURAL GAS dollars per mmBtu | | MONTH | HIGH | LOW | SETTLE | CHANGE | | APR | 4.755 | 4.655 | 4.708 | up 0.029 | | MAY | 4.823 | 4.725 | 4.775 | up 0.029 | | JUN | 4.891 | 4.807 | 4.850 | up 0.023 | | JUL | 4.973 | 4.890 | 4.934 | up 0.022 | | | Estimated Volume…day before (183,980)
Nymex statistics are based on composite Access & Day Sessions
Prompt Gasoline NYH M5 -9.75 to -9.25 RBOB -0.50 /+0.00
US Gulf M4: -13.00 to -12.25 RBOB -1.00 to -0.75
L.A. Conv Reg 220.00-221.00, N-grade Group 202.30-202.80 Chi 197.55-199.55 | |
Market Review for Tuesday
IL prices started out higher yesterday, and they kept rising through the session. At a few points, it looked like there had been news out, and prices seemed to have been reacting to some piece of bullish news. We did not find any smoking-gun information that would have been likely to push quotes higher. At the end of the day, most observers felt it was partially stronger equities, partially a weaker dollar and the rest technical momentum.
There were also some smaller factors that were supportive yesterday. Ultra-low sulfur diesel premia widened, as cargoes were reportedly loaded at the US Gulf Coast for shipment to Chile. Chile’s largest refinery was recently damaged y an earthquake there. Chile is not a huge user of refined products, but it will take time to establish the extent of the damage to its refinery and, in a global market, the loss of supply in one location can quickly turn into a displacement in another location, especially if they draw on some of the same resources.
| Fuel for Thought The United States said this morning that it has “no choice” but to impose “further, deeper sanctions” against Iran. The European Union has also called for a “clear response.” The US Ambassador to the UN, Glyn Davies, said this morning, “While the US has joined its international partners for more than a year in reaching out to Iran through direct diplomacy, Iran continues to resist all efforts to come to a negotiated settlement or to build any confidence in its intentions.” This seems to leave sanctions as the next step. Iran has promised that the West will “regret” any fresh sanctions leveled against Iran. This seems to be approaching a climax of one sort or another. |
Market observers also noted that Ford reported stronger sales than General Motors in the fourth quarter, for the first time since 1998. That seems to have been seen as potentially positive news for the economy. The US dollar started out on a positive note, but there were signs that Europe is continuing to make progress on the Greek sovereign debt issue. As a result, buying came back into the euro, and the dollar seemed to fail again to break key resistance up to the 74.15-74.20 euro cent level.
The DJIA ended with very light gains yesterday, and that was also seen as a positive for oil markets. Commodities, in general, seemed to have a stronger day yesterday, although it was difficult to connect the day’s gains to anything concrete.
This is more or less typical of the mysterious buying we sometimes get in this March to May period. Technical buying can mix with smaller factors – like the earthquake in Chile – to give markets an upward bias that can build on itself. Today’s DOE report will be the next major factor. Last night’s API report showed a larger-than-expected draw in distillate stocks.
Technicals
The oil complex was higher yesterday, and gasoline prices finished above 219.27, which had been an important previous high. Crude oil prices promptly removed the high at $80.62, established on Monday, raced to $80.95, but then sold off and finished under $80.00. It has had a hard settling above that figure.
Dollars per barrel
Above: The crack spread finished yesterday at $10.89, its highest level in months.
April crude oil now has buy-stops over $80.95-$81.00, $82.35, $83.95, $84.83, $85.13, $89.82, $90.99, $93.02, $96.03, and $100.37. Sell-stops are under $78.00, $77.00, $76.30, $73.70, $72.60, $71.30, $70.75, $69.30, $68.55, $68.00, $65.80-$66.20, and $64.95. April heating oil has buy-stops over 208.60, 209.15, 210.91, 211.90, 217.55, 222.72, 225.80, 227.05, 229.08, 238.95, 249.62, and 251.50. Sell stops are under 201.55, 200.55, 199.00, 196.40, 190.75, 189.95, 187.45, 186.50, 182.63, 177.00, 176.68, 173.75, 171.10, 170.35, and 168.60. April RBOB has buy-stops over 222.25, 222.70, 228.86, 240.10, 250.40, 252.00, 265.10, 267.85, and 270.85. Sell-stops are under 215.50, 213.70, 203.80, 202.25, 198.40, 191.85, 187.00, 184.15, 182.40, 181.20, 179.20, 177.30, 175.14, 171.40, and 170.25.
Football: The bears gained 10 yards on first down yesterday, giving them a fresh set of downs.
Technical Support & Resistance
Apr crude oil Support: $78.00-$78.10, $77.00-$77.20, $76.30-$76.60, $73.35-$73.50, $72.60-$72.75.
Resistance: $80.50-$80.65, $80.95-$81.00, $82.20-$82.35, $83.85-$83.95, $84.75-$84.85.
Apr heating oil Support: 201.55-201.70, 200.55-200.70, 199.00-199.15, 197.95-198.05, 196.40-196.55.
Resistance: 207.85-208.00, 208.50-208.60, 209.00-209.15, 210.80-210.91, 211.80-211.90.
Apr Rbob Support: 215.50-215.65, 213.70-213.85, 203.50-203.80, 202.25-202.40, 198.40-198.60.
Resistance: 222.10-222.25, 222.60-222.70, 228.75-228.86, 239.95-240.10, 250.25-250.40.
Oil Inventory Reports
This week’s DOE report has had six of eight years showing draws in both refined products – curiously close – of 1.933 and 1.966 million bbls for distillate and gasoline, respectively (over the six years of draws). Utilization has been higher in four years and lower in the other four years. Crude oil imports have fallen in four years out of the last six. We still have a solid four to eight weeks of turnarounds left, but refiners do seem to have rotated units in and out of service, with the ‘luxury’ of so much spare capacity. As a result, utilization has not dropped as much – although it is extremely low to begin with.
Last Week’s Inventory Comparison: Distillate stocks are now 7.5 million bbls, or 5.17%, higher than a year ago. Heating oil inventories are 5.8 mln bbls, or 15.72%, higher than they were a year ago. Gasoline stocks are 14.8 mln bbls (up 6.84%) higher against a year ago. Crude oil stocks are now 16.7 million bbls, or 4.71%, lower than a year ago. Residual stocks are 2.2 mln bbls (5.82%) higher than a year ago, jet fuel stocks are 1.7 mln bbls, (4.05%) higher than a year ago. Utilization is 0.23% lower than a year ago and 5.33% below the eight-year average. It is 7.50% lower than the four-year, pre-Katrina average and 3.15% below the average of the four years since the big hurricanes (Katrina & Rita) in 2005.
Last Week’s Demand: Four-week, total refined products demand came in at 19.095 million bpd, up 0.100 mln bbls on the week, and up 0.239 mln bpd and 1.27% against a year ago. Two weeks ago, it was 0.159 mln bpd and 0.83% lower than a year ago. Four-week gasoline demand is at 8.741 mln bpd, down 0.34%, compared to up 0.32% seven weeks ago. It was up 111,000 bpd on the week. Four-week distillate demand is now at 3.701 mln bpd, down 6.82%, compared to down 0.98% seven weeks ago. Four-week jet demand is now at 1.321 mln bpd, down 1.93% against a year ago, compared to up 8.17% seven weeks ago. Four-week residual fuel demand is at 0.602 mln bpd, up 4.70%, compared to down 34.14% three weeks ago. Propane use is up 9.10%, to 1.462 mln bpd. Gasoline supply increased by 572,000 bpd this week, while demand was up 543,000 bpd on the week.
Last Week’s API Report: This week’s API report showed a draw of 3.137 mln bbls in crude oil stocks, a draw of 0.834 mln bbls in distillate stocks and a build of 1.738 mln bbls in gasoline inventories. Utilization was up 0.9% to 80.8%. Implied demand came in at a healthy 9.310 mln bpd in gasoline and at a decent 4.306 mln bpd in distillate. Crude oil imports were up 1.153 mln bpd to 9.192 mln bpd. Both implied demand figures improved from really dreadful levels reported last week, and imported more crude oil and seemed interested in refining more, as well.
DOE Weekly Inventory Statistics
| Category | Final DOE Estimate
This Week’s Estimate | History
Last Year’s Report | Most Recent Changes
Last Week’s DOE Report | Versus A Year Ago
Millions of Barrels |
| Distillate | dn 1.50 to 2.00 mln bbls | up 1.662 | dn 0.591 mln bbls | up 7.500 |
| Gasoline | dn 0.50 to 1.00 | up 0.168 | dn 0.895 | up 14.800 |
| Crude oil | up 1.75 to 2.75 | dn 0.757 | up 3.034 | dn 16.700 |
| Utilization | dn 0.0% to 0.5% | up 1.7% at 83.1% | up 1.42% at 81.17% | |
| Crude Imports | dn 0.000 to 0.500 mmbd | up 0.259 to 9.028 | up 0.536 to 9.084 mln bpd | |
| DOE Distillate Demand | 3.662 mln bpd | dn 125,000 | Gasoline Demand | 9.064 mln bpd | up 543,000 |
| DOE Distillate Production | 3.591 mln bpd | up 158,000 | Gasoline Production | 8.863 mln bpd | up 435,000 |
| DOE Distillate Imports | 0.444 mln bpd | up 053,000 | Gasoline Imports | 0.846 mln bpd | up 137,000 |
Source: US Department of Energy’s Energy Information Administration
Open Interest Analysis
Crude oil open interest grew by 5,325 contracts on Monday, when prices were lower. That looks like new selling and would be bearish.
Heating oil open interest grew by 1,182 contracts on Monday, when prices were lower. That looks like new selling and is bearish.
RBOB open interest grew by 1,413 contracts on Monday, when prices were lower, which would be fresh selling.
Natural gas open interest grew by 5,492 on Monday, when prices were lower. That looks like new selling, which we presume to have come from funds.
Monday’s Open Interest Changes:
Crude 1,279,332 up 5,325 Heat 299,392 up 1,182 RBOB 263,761 up 1,413 Nat gas 821,632 up 5,492
CFTC Commitments of Traders for Nymex (for the period ended Tuesday, Feb 2nd)
Crude oil prices rallied $1.44/bbl over the latest reporting period, and the best buying came from Managed Money accounts. They bought 14,963 new longs and added 2,900 shorts. Producers liquidated 16,027 longs but also covered 14,302 shorts. Other Reportables also covered 8,096 shorts, while liquidating 3,243 longs. Swap Dealers liquidated 16,820 longs and added 7,358 new shorts and were the only pure sellers. Managed Money accounts were the best new buyers, but short-covering by Producers and Other Reportables, doubtless leading into the March crude contract expiration, also boosted prices.
In heating oil futures, prices rallied 3.60 cents a gallon, and the best net buying came from Managed Money accounts, which added 10,901 new longs and covered 5,938 shorts. The other categories sold into strength, with Producers liquidating 3,741 longs and adding 10,900 shorts, Swap Dealers liquidating 4,838 longs and covering just 6 shorts, and Other Reportables liquidating 3,389 longs and adding 1,411 shorts. Managed Money was the motive force behind higher prices.
Gasoline prices gained 7.74 cents a gallon during the period under review. Managed Money accounts added 13,745 new longs and covered 2,425 shorts, while Other Reportables added 208 new longs and covered 89 shorts. Producers liquidated 6,016 longs and added 9,891 new shorts into the rise, while Swap Dealers liquidated 2,319 longs and added 593 new shorts. Funds were the biggest buyers, with commission houses buying very lightly. Producers were the best sellers.
In natural gas, prices dropped 53.2 cents during the period under review. Here, it was cut and dried; Managed Money sold 19,855 new shorts and liquidated 7,655 longs (short 3-to-one). Other Reportables added 6,111 longs and covered 9,400 shorts, Producers added 2,851 longs and covered 2,900 shorts and Swap Dealers added 2,409 longs and covered 3,041 shorts. Everyone sees a bargain, here, except the funds pressing quotes lower. They were the best and only sellers.
Natural Gas & Utility Generation
Natural gas prices rallied lightly yesterday, and it seems that it was a combination of bargain-hunting and short-covering that pushed quotes higher. More than anything else yesterday, we did not have the funds selling prices aggressively lower. Even with prices up slightly, the crude-to-gas ratio continued to move higher.
That may be more significant that we are aware, because those pressing natural gas quotes lower would almost have to be long something else against the short position in natural gas. The risk is just too great, otherwise. We have for a while now suspected that the huge short positions reportedly being held by managed money accounts in natural gas were balanced by long positions in the oil complex. It is hard to say whether that would be in crude or in heating oil or some combination of the two.
Earl estimates for this week’s EIA underground storage report suggest that we will have a draw of between 117 bcf and 155 bcf, according to Reuters. If we see a draw even at the lower end of that range, it would help to eat into the surplus against the five-year average and it would help to increase the deficit against a year ago. According to our records, the five-year average drawdown has averaged 112-113 bcf. Last year, we had a drawdown of 102 bcf. If we see a draw of 122 bcf this week, it should eat away 10 bcf from the surplus against the five-year average and should increase the year-on-year deficit by 20 bcf.
If we had suggested that we would be where we are right now in terms of the comparison against a year ago and against the five-year average, back when this heating season started on November 1st. we think that most traders would have taken it as a very bullish heating season. And, for the most part, those trading this market do seem to see genuine improvement from the fall. Commission houses, old-line speculators, swap dealers and even producers have been buying into this market recently, if one looks at the most recent CFTC figures. The only category that has been selling in this market has been managed money, or funds. We are not sure who it is or why they are doing it, but this same group has been short through hurricanes, winters, summers, and everything. We are convinced that they are holding natural gas contracts short against long positions elsewhere.
In cash trading yesterday, Henry Hub prices were at $4.71-$4.82, down $0.07-$0.10 on the day (DJN). SoCal prices were at $4.80-$4.88, down $0.060-$0.074 on the day. El Paso Permian prices were down $0.04-$0.049 at $4.6771-$4.748. Katy prices were down $0.07-$0.073 to $4.707-$4.7986. Waha prices were down $0.08-$0.09 at $4.66-$4.75. Transco 6 was down $0.05-$0.08 to $5.27-$5.34/mmBtu, according to Dow Jones News (DJN).
Palo Verde prices were last quoted at $43.00-$45.00/mwh. Northeastern prices last traded at $45.50-$48.25. Cinergy was last at $40.75-$41.50. Ercot was last at $41.85-$42.75/mwh.
Support is at $4.64-$4.66, $4.40-$4.43, $4.15-$4.17, $4.05-$4.08, $3.73-$3.75, $3.66-$3.68, $3.50-$3.53, $3.44-$3.46, $3.28-$3.32, $2.91-$2.93, $2.80-$2.82, $2.74-$2.75, and $2.69-$2.70. Resistance is at $4.75-$4.76, $4.86-$4.89, $4.97-$5.00, $5.16-$5.17, $5.46-$5.47, $5.55-$5.60, $5.87-$5.90, $5.99-$6.03, $6.09-$6.11, $6.15-$6.17, $6.34-$6.37, $6.65-$6.69, $6.90-$6.94, $7.01-$7.04, $7.28-$7.31, and $7.34-$7.36.
Apr Natural Gas: Support : $4.64-$4.66, $4.40-$4.43, $4.15-$4.17, $4.05-$4.08, $3.73-$3.75, $3.66-$3.68.
Resistance: $4.75-$4.76, $4.86-$4.89, $4.97-$5.00, $5.16-$5.17, $5.46-$5.47, $5.55-$5.60.
Natural gas prices rallied lightly yesterday..
Dollars per million Btu
The crude-to-gas ratio continues to increase. It finished yesterday at 16.92-to-one, its highest level since early December.
Ratio
EIA Weekly Storage Figures
Last week’s EIA report showed a draw of 172 bcf on expectations for a draw of 169-170 bcf. Stocks are now 56 bcf lower than a year ago, against a surplus of 26 bcf a week ago, a surplus of 172 bcf two weeks ago and a surplus of 199 bcf three weeks ago. Stocks are now 2.93% lower than a year ago. They are 13 bcf and 0.71% above the five-year average.
For this week, the eight-year average (of similar Friday reports) was a draw of 112.38 bcf. The five-year average was a draw of 112.67 bcf. Last year’s draw was 102 bcf.
EIA Report
| Region | 02-19-10 | 02-12-10 | Change | Last Year | 5 Yr Avg |
| Cons East | 935 | 1030 | dn 95 | 886 | 958 |
| Cons West | 311 | 322 | dn 11 | 298 | 255 |
| Producing | 607 | 673 | dn 66 | 725 | 627 |
| Total US | 1853 | 2025 | dn 172 | 1909 | 1840 |
Bcf, or Billions of cubic feet. Source: Energy Information Administration, US Department of Energy
News & Views
| In trading on Nymex, April crude oil prices were up $0.44 at $80.12/barrel at 8.30 AM EST, this morning. April heating oil prices were up 1.63 cents to 2.0724/gallon. April RBOB prices were up 0.37 cents to 2.2003. April natural gas prices were down $0.007 to $4.701/mmBtu. Oil prices were higher in reaction to higher equities prices in Asia this morning. Risk appetite seems to be back, even without strong moves in either equities or currencies, and momentum is higher, here. DOE Expectations The table below lists the final survey results for Dow Jones, Bloomberg and Reuters. The DOE report will be released at 10:30 EST on Wednesday morning this week. Category Dow Jones Bloomberg Reuters Crude up 1.000 up 1.250 up 1.400 mln bbls Distillate dn 0.700 dn 1.000 dn 0.900 Gasoline up 0.700 up 0.200 up 0.600 Utilization unchanged unchanged dn 0.1% 
Crude oil prices were higher again yesterday, and they broke the recent high at $80.62, getting up to $80.95 before selling off again below $80.00. This has been unusual activity lately. | 
Heating oil prices were higher yesterday, and they challenged the recent high at 209.13, but did not break it. Today, it is all about the DOE report. DOE History: Distillate stocks have fallen in six of the last eight years, by an average of 1.933 mln bbls. The eight-year average is a draw of 1.067 mln bbls. Gasoline stocks fell in six of the last eight years, for a six-year draw of 1.966 mln bbls and an eight-year average draw of 1.242 mln bbls. Crude oil stocks have been higher in five of the last eight years for a five-year average build of 3.940 mln bbls and it has an eight-year average build of 1.380 mln bbls. Utilization has been lower in four of the last eight years and has an eight-year average decline of 0.33%, with an eight-year average utilization figure of 86.66%. The four-year, pre-hurricane utilization average was 88.33%. Since Katrina, refineries have run at an average utilization rate of 85.00%. Crude oil imports have been lower in four of the last six years, and the average crude oil import figure over the last six years has been down 199,000 bpd. The average crude oil import figure over the last six years has been 9.562 million bpd. Imports were nearly half a million bpd below that average in last week’s report. Over the last few weeks, imports have been slowly recovering from the deepest discounts (to previous years) ever seen. |
| Crude prices have resistance up to $80.95. | |
Momentum is higher in the oil complex, although crude oil is having a difficult settling over $80.00. Today’s DOE report should set the tone for the rest of the day and possibly the week.
An Illustrated Look at Energy Market Factors
A Look at the US Dollar Versus the Euro
Dollar-Euro (dollar in euro cents): Three-Month Bar-Chart 
The US dollar rallied up towards the major resistance in the 74.15-74.20 euro area, but it failed to break above that level, and sold off as a result. That was supportive for oil prices later on in the day yesterday.
http://www.advfn.com/p.php?pid=forexqkchart&curcode1=USD&curcode2=EUR
A Look at the Dow Jones Industrial Average (djia)
Dow Jones Industrial Average: Six-Month Chart
The DJIA ended with gains of 2.19 points yesterday, after breaking to new recent highs. That was supportive for oil prices and other commodities yesterday.
Source: http://money.cnn.com/quote/chart/chart.html?symb=djia&sid=1643&time=6mo&Submit1=Refresh
Recommendations for Specific Market Segments
Heating Oil Distributors Heating oil prices rallied yesterday, but they still have resistance overhead. They continue to have resistance at 209.13. Like everyone else, we are entering this year’s seasonal with a fair amount of trepidation. We continue to believe that the best way to use the seasonal tendency for stronger prices this year is by getting customers involved in the process. If they decide they want to use this period to hedge against next winter, it makes a good deal more sense to get involved. In the meantime, we would be using dips to buy in this market. We never really like buying into strength in the first place. And, while there is a strong history of this seasonal working, we do not want to shoulder any undue risks this year. We continue to prefer using caps or calls, where possible. Diesel Users We would hold our caps and will be buying into dips from here. NYH Ultra Low Sulfur Diesel.…212.85-213.35 plus 7.500 USG Ultra Low Sulfur Diesel.…207.85-208.25 plus 2.500 Jet/Kerosene Users & Airlines New York Harbor cash market differentials were 6.00 to 6.50 cents over January heating oil in NY Harbor and 2.25 to 2.50 over the screen in the US Gulf. Diesel & Gasoline Marketers We would keep product hedged, but we may have opportunities here. Gasoline Blenders & End-Users We want to be buying caps, calls or futures on dips from here. Prompt NYH Fuel Ethanol…..179.00-181.00 Prompt USG Fuel Ethanol….169.00-171.00 Quotes from 03-02-10 Heating Oil End-Users We want to use this initial dip to get our foot in the door on the long side. Speculators We will be looking to buy calls here, and on any additional weakness between now and March 15th, increasing our positions the nearer we get to March. Refiners The 7:5+2 crack spread was $10.89 yesterday. Crude Oil Producers Crude oil prices were back up yesterday, but they are still having trouble settling over $80.00. | Prompt Jet Fuel Prices New York Harbor 211.60-212.10 US Gulf 207.85-208.10 Midwest (Group Three) 208.10-210.60 Midwest (Chicago) 207.60-209.40 Los Angeles 210.00-211.00 San Francisco 210.00-211.00 Portland, Oregon 210.00-211.00 Cents per gallon Propane Prices Mont Belvieu……….…..non-TET………$1.175000 Cents per gallon  Gasoline prices were higher yesterday, and they traded over much of the territory covered in Monday’s trading. Yesterday’s settlement was above 219.27, which is a positive development. Gasoline is clearly the strongest member of the oil complex here.
We like buying into weakness, and would have bought our first contract on Monday at 214.60, basis June. The seasonal tendency has started. |