Futures Continue to Rise as All Eyes on Iran

Posted by Mark Pszeniczny on Feb 22, 2012 3:59:00 PM

It seems like we have been repeating the same mantra for a month, " we appear to be at the high end of the range".... Unfortunately we haven't moved any lower. Since the begriming of the month we have seen roughly 20 cents gets tacked on to HO ( as shown below) . Presently we are at 18 month highs for the Heating Oil pit. Early in todays session it appeared we were going to have a healthy correction as both pits were off roughly 2 cents on news of lagging manufacturing rates. That sell off gave way to a buying spree as more and more people put Greece on the back stove and gave credence to Iranian threats. Iranian ministers again today announced it would not idly sit by if provoked by another country. This comes on the heels of yesterdays announcement that it would take "preemptive measures" if provoked by sanctions. The nation has already cut supplies to the European zone that continues to be mired in a deep freeze. There is no doubt that we have a problem in Iran, the key will be how the White House chooses to deal with it. Domestically, as gas prices continue to rise, the self fulfilling prophecy has taken hold over news outlets predicting $5 gas by Memorial Day. All in all, there is very little in the way of bearish data or news to push the trade down and as historically happens, demand destruction will be a deciding factor for lower prices. At the close, Crude rose 3 cents to $106.28, RBOB tacked on .0175 to $3.0877 and HEAT gained another .0331 to $3.2724.
 
heat map
RBOB CLOSE
CLOSE CHANGE
 
MAR 30877 +.0175
APR 32630 +.0145
MAY 32536 +.0151
JUN 32249 +.0160
JUL 31842 +.0158
AUG 31372 +.0150
HEAT CLOSE
CLOSE CHANGE
MAR 32724 +.0331
APR 32650 +.0302
MAY 32509 +.0271
JUN 32417 +.0250
JUL 32429 +.0232
AUG 32445 +.0211

Topics: Iran, European Economy, $5 Gas

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