NYMEX Futures End Positive for Fifth Straight Session

Posted by Mark Pszeniczny on Aug 15, 2013 4:23:00 PM

All news today was nothing but feed for the Bulls that have been in control of the pits over the last week.  After HO dipped below 2.95 late last week, buying has come back with force.  Today was strong out of the gate and while RBOB was tamed slightly, HO kept right on rolling.  NOAA models now show Tropical Storm Erin churning in the mid Atlantic with an expected path set on Puerto Rico for sometime late next week.  First storm of the season always brings the buyers out.  Data on the economic front showed the US had the lowest unemployment claims in just over six years.  While this is good for the economy, not so good for Future pricing.  Along side that, most now expect the FED to significantly slow down their Bond buying program over the next sixty days as the economy shows signs of improvement.  Finally, the continued and recently heightened unrest in Egypt, has many concerned over the regions safety.  Egypt largely controls the Suez canal which is a vital shipping lane for Crude barges, anything that can remotely affect Crude shipments will push futures higher.  Still optimism remains as RBOB shrugged off the news and was only able to muster a 15 point gain to close at $2.9845, while HO jumped another .0250 to $3.0728 ( the high end of the wide range  we have been in) .  Crude added .48 to $107.33.  I stay optimistic for lower prices coming as the semi mixed close is always a key point to momentum swings.

 Daily Heat Chart
Daily heat chart
RBOB Close
                      CLOSE     CHANGE            
SEP   2.9845         +.0015
OCT  2.8562        +.0068
NOV   2.8118        +.0101
DEC    2.7813      +.0116
JAN     2.7646     + .0117
                  FEB    2.7599     +.0119               
  
HEAT Close
      CLOSE            CHANGE
SEP  3.0728        +.0250
OCT  3.0795      +.0255
 NOV  3.0823      +.0250   
DEC  3.0808     +.0246
JAN   3.0791    +.0240
FEB  3.0692     +.0243

 

Topics: Eygpt, Tropical Storm, CRUDE, FED rates

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