The rally in energy prices continued yesterday with prompt month gasoline and diesel futures tacking on 2.5+ cent gains on the day.
It seems that international tensions are overwriting fundamental measures this week as a bearish confirmation of Tuesday’s API report by the Department of Energy’s weekly inventory update seemed ineffective in stalling this week’s rally. Crude oil and gasoline stocks both built by 3.3 and .5 million barrels, respectively, while diesel offered the only bullish number, drawing down by 1 million barrels. Refinery runs continued their streak in setting seasonal highs and showed a .5% increase in rated last week, topping 17 million barrels per day in throughput.
Self-fulfilling theory or not, Reversal Thursday is gripping energy futures this morning; all contracts concerned are off 0.5%-1% so far today. Barring more news from the White House on how “smart” our anti-Syrian missiles are, today should be mostly quiet regarding price action. RBOB, HO, and WTI contracts all hit a temporary technical indicator that serves as a sort of sanity check on large market moves both yesterday and this morning. The top Bollinger Band seems to be keeping the rally at bay for now, allowing other chart elements to catch up to this week’s market move.