Futures Continue to Rebound After Early Week Sell Off
Front month Heat continues to find comfort above the 2.95 level as traders weigh the recent barrage of news. Earlier in the week, many feared an almost inevitable Government shutdown, but those fears were erased late Wednesday as a House Bill passed that would fund activities for the next several weeks. While Inventories were in my opinion somewhat Bearish, the news didn't take so well yesterday and pushed futures up slightly ahead of today's report that showed the US economic growth rate fell in line with expectations with an increase of 2.5%. Additionally, new applications for unemployment benefits fell by roughly 5000 to 305,000. The Bullish overtures of a growing economy almost always will spur a rise in Commodity futures. The Syrian problem continues to drag on in a political stalemate as Russia successfully blocked a UN resolution which would have authorized military strikes. While news may be what most are pointing to as the driver, one must give the technical analyst his due. The Failure of front month HO to settle below the 2.95 mark has spurred buying over the last two sessions. This level continues to be a huge support area. At the Close, Crude gained .37 to $103.03, RBOB added .0321 to $2.7050 and HO settles up .0306 to $3.0037