Crude Oil with a very slow night last night only having a 70 cent range as it now trades down 20 cents in the front month contract to $105.37 as the USD gains a little bit of ground against the Euro today trading at an even $1.41. WTI has rallied 25 percent since protests began Feb. 15 in Libya, a member of the Organization of Petroleum Exporting Countries. The conflict is the bloodiest in a wave of uprisings that has toppled the presidents of Tunisia and Egypt and spread to Algeria, Bahrain, Iran, Oman, Syria and Yemen. Yemen's strengthening opposition movement plans to march to the Presidential Palace today and hold nationwide protests as government supporters pour into Sana'a, the capital, for a rally dubbed "Tolerance Friday." (1) WTI spreads rallied significantly yesterday but gave back some of the gains as M/Z traded up to -25 but has since gotten hit back to -100. K/M broke the -50 resistance and M/N broke -40 but both are back below those numbers now. Once again a Friday rally could be in order so watch May Crude as support is likely at $104.70 while the resistance stands at $107.00 right now. Keep an eye out again on the Middle East as any word from there could trigger a sell off or move higher.
- Daniel Cronin, Energies Futures Trading of Pitguru [more]
The Learn About Futures Insider: Heating Oil [more]