Gas falls, HEAT holds as cold air hits

After yesterday’s downright balmy weather in the northeast, today brought us back to reality with temps in the low teens.  That cold air was a key factor in keeping HEAT pits positive today while gasoline values fell.  Front month HEAT gained .0027 to close at $2.4679 while RBOB lost .0220 to $2.2964.  Crude is still unwilling to move from its current range and settled at $88.28, down 33 cents.  The market continues to search for direction as Inventories are expected to show a draw in Crude supplies and builds in gasolines and distillates.  With gasoline demand reported to have fallen over 2% in the last week, but again those are credit card transactions which can be misleading, some sought to shed length.  On the flip side, Personal spending rose pointing to a better economic picture for some as hit the heart of the buying season for most Americans.  Based on the HEAT chart below, we are due for breakout in either direction, which way remains to be seen.  Interesting to note that it has been over two months since we saw this type of range bound trading.