Market Overview

Crude Oil Recently Broke Consolidation Resistance at 103.50


Crude Oil Futures


Heating Oil Futures


RBOB Gasoline Futures


Crack Spread

Crude Oil recently broke consolidation resistance at 103.50 (red lines).  The pattern height was 8, so the bullish move measures to 108.50.  A push to 108.50 could extend to previous highs resistance at 115 (yellow line).  We are bullish in Crude on moves back to 103.50 consolidation resistance turned support.

Heating Oil is heating up after breaking consolidation resistance (red lines) at approximately 3.1350. This break could take Heating Oil to new 52-week highs, but it will have to break resistance at 3.30 (yellow line).

After finding support at 2.46 (yellow line), RBOB Gasoline rallied at managed to break through downtrend resistance (purple line) and 200 day SMA (blue line). It is now in an uptrend channel and has shown no signs of hesitation at potential resistance levels thus far.

This brings us to the Crack Spread, which is the difference between the price of crude and petroleum products, like heating oil and gasoline, that are extracted from it. The Crack Spread is up 17% today at 29.84.  We had a nice downside move in the Crack Spread recently, but it was short lived.  The fact that crude, petro related products, and the Crack Spread are all rallying leads to inflation in prices.

If you are simply watching Crude Oil Futures to determine what gas prices are going to do, you will often be left wondering why gas prices went up or down. Instead, watch Crude Oil, RBOB Gasoline, and the Crack Spread.  This will give you a much better feel for gas prices.

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Commodities Markets Trading Ideas

 

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