Cameron Hanover – Daily Energy Hedger – September 9, 2010

Oil prices were higher on Wednesday despite the release of the Federal Reserve’s “Beige Book,” which showed “widespread signs of a deceleration” in economic growth and recovery. Most significantly, the Dow Jones Industrial Average (DJIA) was higher on the day, finishing with gains of 46.32 to end at 10,387.01. The euro ended the day effectively unchanged. Technically, refined products have now put in place minor head & shoulders bottom formations, which suggest that both heating oil and gasoline prices could make sustained runs at their most recent highs, at 220.88 in heating oil, and at 219.93 in gasoline. Wednesday’s activity was tentatively bullish.