Break out the abacus kiddies, it’s time to play economics with crude

Crude: And another month bites the dust. It’s hard to believe that we’re already moving along to the CLM7 contract. We now pivot past the last month of the year and that should be worth something to everyone trying to play the cash and financial markets. We kick off with resistance here at 4640, 4730 and 4850. We’ll look back lower to support at 4510, 4460 and 4350. We’ll also change the lead spread and the front spread moves up to CLM7/CLN7 and start with resistance at –32, -25 and –13. Support comes back to –44, -57 and –65. Let’s get this week done right and the new contract back in play. Don’t lose your way; follow the Dollar, follow the dream. 

Gasoline: OK laziness has been set aside and I’m moving ahead the RBM17 contract. We can start with resistance here at 15340, 15565 and 15780. Support looks below to 15172, 14980 and 14775. The front spread moves to RBM7/RBN7. Resistance at +25, +110 and +200. Support to –55, -124 and –190. The RBM7/CLM7 gets resistance at 1720, 1802. Support falls to 1663, 1572. 

Distillate: The calendar keeps us moving and we are focused on the HOM17 contract. We’ll get resistance here at 14585, 14775, and 14955. Support looks back to 14366, 14135, and 13988. The front spread bumps up to HOM7/HON7. Resistance here looks at –48, +35. Support holds down to –76, -88. The crack moves up to HOM7/CLM7 Resistance at 1459, 1518. Support back to 1378, 1310. 

Macro Fundamentals: We have a lot behind us now and it’s only getting started for the macro funds folks. It’s been interesting to see the markets overnight because the financial markets are still taking the huge Unemployment numbers in stride. Even after the ADP numbers came out a bit weak, there’s a lot of buzz that May’s unemployment figures could be a lot better than April. If any of that is even close to true, the June FOMC meeting is going to have to close with a hike. A lot more Fed speakers today but also JOLTS and Wholesale Trade (0.2) at 10:00 a.m. ET. 

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About the Author

Carl Larry is Director of Business Development Consultant for Oil and Gas at Frost & Sullivan. Follow him on Twitter (@oiloutlooks) or on his website.