Taking A Breather After New Monthly Highs
The energy complex is flat this morning with WTI and HO futures trading up 0.2% and RBOB and Brent trading lower about the same. The prompt month benchmarks will likely be content taking a breather today after new monthly highs were set yesterday on relaxing fears of a coronavirus epidemic. Meanwhile on Wall Street, increased fears of a coronavirus epidemic is taking credit for this morning’s sell-off.
The EIA’s total crude oil inventory build outpaced the API’s estimate by about 1.5 million barrels as production returned to its all-time-high at 13 million barrels per day. Refinery runs along the Atlantic coast continue to set new seasonal lows after last year’s closing of the PES refinery and recent hiccups with the Phillips 66 in Linden, NJ.
Refined product charts have put technical barriers between current prices and floor-apparent set earlier this month. Prompt month RBOB broke through its 20-day moving average yesterday, leaving the way open for the contract to challenge the 50-day about four cents higher. HO is eyeing its 20-day MA this morning which, if broken, could open the gates to 15 cents of upside.