Market attention is beginning to shift and focus on the prospects for further inventory declines. Iran, OPEC’s second largest oil producer, ignored a United Nations Security Council resolution ordering it to halt uranium enrichment by Feb. 21, raising the specter for a showdown and increasing the odds that oil could be used as a weapon in retaliation for U.N. sanctions.
April crude oil
A close over $61.81 per barrel is needed to unleash another wave of buying, keeping the bulls in firm control, and targets $62.49. Price action that is unable to breakout past $61.81 could pull back to $60.00 support. A close below $58.90 hints at a turn to lower prices to test $58.00.
April heating oil
Trade is poised to break out above $1.75 per gallon. A close above $1.75 targets $1.78. A close under $1.70 should send trade to test $1.6630 support. A below $1.6630 would embolden the bears.
April Rbob unleaded gas
Last week’s spike higher puts the bulls in firm control and hints at further rallies a close above $1.8250 per gallon targets $1.85. A close below $1.77 hints at a test of $1.73 support.
April natural gas
The market is attempting to push higher targeting a break above $7.899 per MMBtu. A close above $8.000 resistance emboldens the bulls and targets $8.200. A close below $7.400 is needed is needed to put bear trending forces in control.
Ralph D. Preston IIIHeritage West Financial Inc.
(858) 560-2646(800) 263-3004
(858) 560-0704 faxrpreston@heritagewestfutures.comwww.heritagewestfutures.com
Past performance is not necessarily indicative of futures results. The risk of loss is present in trading futures and options.
