Oil: Up, up, and away?

Oil Outlooks

It’s funny how things that were once so important seem to just fade from our memories so fast. Like the going Gangnam Style, Honey Boo Boo, oh yeah, and Iraq. It was about ten years ago that this was one of the corner-stones of turning the war on terror.

We went in there, kicked their military all over the place and confiscated every single WMD we could find. And then we instilled a solid government based on democracy to save that country from its poor future. Hmm, something like that. OK, what we did do was make it safe enough for those lucky people that were living in Iraq to enjoy the benefits of their country’s oil production. Some of you may not remember how all that went down, but Iraq was supposed to be at 3M b/d by 2006 and by 2012 they were going to be knocking out 5 M b/d. Well I guess that didn’t go to plan either.

Crude (NYMEX:CLN14)
 

Hey hey, how about a little life in these charts. I’m impressed and happy that we managed to knock it up a little on the chart yesterday and we'll see if we can follow through today. The RSI is picking up the pace. We’ll put resistance up at 10646, 10755 and 10858. The support comes back to test levels at 10394, 10218, 10166.

The front spread has been slipping and we’re refocusing on getting past resistance at 88, with 95 above. We’ve been taking a lot off the table, but it might be an opportunity to fill our plates again. Up, up and away we go. Look to be careful as spikes will tend to take profits early, but be assured higher is the path.
 

Gasoline (NYMEX:RBN14)
 

All good with RBN4 now. All the volume moved here early, so let’s see what we get now. We see resistance 30588, 30765 and 31012. The support numbers come in at 30286, 30005 and 29731. The front spread moves ahead and we get resistance at 384, 411, 464. The support holds 348, 319, 278. The RBCL hits resistance at 2226, 2280. Support looks to 2160, 2098.
 

Distillate
 

Moving along to HON4 here. Picking up some interest and volume here. The resistance numbers come in at 29674, 29813 and 30025. Support levels check in at 29482, 29305 and 29039. The front spread gets nowhere and has resistance at –55, 42. Support looks to test –78, -85. The HOCL has reversed higher and support holds 1800, 1744. Upside resistance hits 1844, 1902

About the Author

Carl Larry is president of Oil Outlooks and Opinions LLC. Follow him on Twitter @oiloutlooks or on his website, http://www.oiloutlooks.com.

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