Ho-hum oil

Crude: And another month bites the dust. It’s hard to believe that we’re already moving along to the CLN7 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 5144, 5255 and 5360. We’ll look back lower to support at 5020, 4940 and 4860. We’ll also change the lead spread and the front spread moves up to CLN7/CLQ7 and start with resistance at –22, -16 and +15. Support comes back to –35, -48 and –57. 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 16566, 16870 and 17035. Support looks below to 16330, 16170 and 15965. The front spread moves to RBM7/RBN7. Resistance at +55, +110 and +200. Support to –30, -114 and –190. The RBN7/CLN7 gets resistance at 1855, 1922. Support falls to 1778, 1710. 

Distillate: The calendar keeps us moving and we are focused on the HOM17 contract. We’ll get resistance here at 16055, 16270, and 16449. Support looks back to 15880, 15660, and 15455. 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 HON7/CLN7 Resistance at 1642, 1708. Support back to 1588, 1530. 

Macro Fundamentals: Remember how it was all about to come crashing down last week. On Wednesday, equity analysts we’re shouting out the impending doom and America was on the verge of a Presidential impeachment. Then all of a sudden everything was fine. That’s what twenty-four hours of normal thinking can do. Next time there’s a panic at the disco, please ask your friendly neighborhood oil trader for a better opinion. Now we’re ready to move on and get back into the June FOMC focus. PMI Composite Flash (52.3) at 9:45 a.m. ET. New Home Sale (604K) and Richmond Fed Index (15) at 10:00 a.m. 

Page 2 of 2
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.