The entire energy complex is poised to climb higher. Unleaded gas made a new high on July 12 at $2.3039 per gallon and crude oil is advancing on its all-time high of $78.42 per bbl. with $80.00 plus within sight. Heating oil is staging a comeback on its contract high while natural gas is in the midst of a bottom turn. Energy prices are being driven by fears that the conflict between Israel and Hezbollah will engulf the entire Middle East. Iran has made it clear that any attack on Syria by Israel would be considered an attack on Iran. Any incursion by Israeli Defense Forces into Lebanon would be considered a dramatic escalation in the conflict and be sure to send energy prices higher.
August crude oil
The market is poised for further advances over last week’s high of $78.38. A close below $74.95 is negative for the bull drive higher. A close under $72.27 will encourage sell offs.
August heating oil
Last week’s price action held above key support $2.0151 per gallon. A close above $2.1000 will set the stage for an advance on the contract high of $2.1404 made May 11. A close below $2.1048 is bearish.
August unleaded gas
The market is bullish with a close above the previous contract high of $2.2824 triggering a buy signal. Solid support is at $2.2589 and a close below $2.2146 voids the bull drive higher.
August natural gas
The market had a strong bounce off the $5.500 support level and is targeting resistance at $6.816. A close under $5.816 will keep bear forces in control.