Crude: What it is, what it was and what it shall be

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 5184, 5255 and 5360. We’ll look back lower to support at 5080, 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 of the RBM17 contract. We can start with resistance here at 16870, 17035 and 17240. Support looks below to 16678, 16490 and 16255. 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 16270, 16455, and 16660. Support looks back to 16088, 15870, and 15658. 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: I want to shout this out one more time; remember last Wednesday when the everyone thought the US economy and markets we’re about to implode? Yeah, moving on. Oil stood its ground back then and we all hope that those stock traders and economist learned a lesson about what we do over here. We’ll keep doing the do and hammering home the plain and simple fact that with demand higher, the economy has to be doing a lot better. We get the FHFA House Price Index (0.5) at 9:00 am ET and follow that up with Existing Home Sales (5.650M) at 10:00 a.m. 

Trade well and prosper.

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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.