After ignoring the fundamentals for several weeks the market focused on the bearish oil inventory report on Wednesday and shed some of the gains made from earlier in the week. However, even with yesterday’s selling the market still remains very overvalued basis what the current fundamentals are indicating.
The market still remains focused on the relationship of the USD which made all time lows yesterday. With diverging factors in play in the oil complex we can expect volatility to remain at high levels and price movements to be erratic and choppy as the market decides it next move. We do not expect to see a major sell-off this week but it is possible. Rather we expect the market to drift a bit lower and likely firm up heading into the weekend.
Currently prices are mixed.
Current Expected Trading Range | | | ||
| 2/28/08 | Change | Upper | Lower |
| | From | Resistance | Support |
| 7:58 AM | Yesterday | | |
Apr WTI | $100.00 | $0.36 | $102.50 | $85.25 |
Mar HO | $2.7865 | $0.0154 | $2.8500 | $2.4000 |
Mar RBOB | $2.4805 | $0.0028 | $2.6500 | $2.2000 |
Apr NG | $9.182 | $0.122 | $9.250 | $8.250 |
| | | | |
Dominick A. Chirichella
Energy Management Institute
tel 646.202.1433
fax 801.383.7510
dchirichella@emimail.org
www.energyinstitution.org
www.advancedenergycommerce.com
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