Futures edge higher off lows, products expected to build

As the morning began, we looked to head towards a session that was going to continue the downward slide after a brief bounce on Monday. That all changed as the opening bell rang and what was a negative market turned positive. HEAT bounced off the 50% retracement level and never looked back. With news relatively mild today as the country braces towards Wednesdays DOE report, all expectations are for the products to build by 1 mbl. The rig disaster in the gulf should not have a major effect on supply, yet should inventories come in lower than expected; it will be pointed to as the primary cause. HEAT appears to be range bound for the time being as last weeks big fall as many heads still spinning. It’s natural to see some buy back. As little as we want to put stock in the charts, as shown below, that 2.05 level held and the 2.10 level held today. But, “turn it upside down and it will say the same thing”. We could see a short term range defined with the inventory report on Wednesday. At the Close, Crude fell .43 to $76.37, RBOB added .0226 to $2.1952 and HEAT rose .0199 to $2.1401.