200 Day Texas Two Step

By: Peter Haralambakis / August 8, 2017

“Quick, Quick, Slow, Slow”, is how the energy markets have been trading the past week and a half.  We have danced around the 200 day moving average, currently at $49.39, in West Texas Intermediate for September delivery for the past 8 trading sessions with quick spikes and pullbacks peppered throughout that time frame.  As of 11:21 am EST, WTI is up $0.04 at $49.43, RBOB is down $0.0093 at $1.6204, and Heating Oil is down $0.0034 at $1.6364. 

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Pushing above the $49.39 level signals a move up towards the 6 month downward channel-top of $49.83.  On the downside, breaking below the $49.39 level can place a near-term low of $48.18.  Headlines and trading volumes continue to be light.  Compliance with agreed to production cuts and production increases from Libya and Nigeria, still rule our headlines.  With bullish news from the Saudis cutting their crude allocation in September by more than its pledge and bearish headlines of Royal Dutch Shell restarting a number of its units at the Netherlands Pernis refinery ahead of its previously estimated time, I’m afraid we are stuck in a loop of dance steps.  A Reuters Poll shows U.S. crude stocks, and refined product inventories down last week.  Reuters forecast for week ended 08/04/17 shows crude down 2.8 million, Distillates down 100k, and Gasoline down 1.5 million.  As we await APIs this evening and DOE Stats tomorrow, we can only continue the dance.  1, 2, 1, 2….1, 2, 1, 2.

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Categories: Daily Market Update


Peter Haralambakis

Written by

Peter Haralambakis

Peter Haralambakis is a Supply and Trading Business Development Manager at Guttman Energy with over 13 years of experience in commodities trading, analysis, and risk management in products ranging from Corn and Soybeans to Crude Oil Futures and Options to Financial and Physical Biofuels to Natural Gas and Natural Gas Liquids.


Guttman Energy Daily Market Update Disclaimer – The information contained in this market update is derived from sources believed to be reliable; however this update could include technical inaccuracies or typographical errors and Guttman Energy does not guarantee the accuracy, completeness or reliability of this update. FURTHERMORE, THIS UPDATE IS PROVIDED "AS IS," WHERE IS, WITH ALL FAULTS AND WITHOUT ANY WARRANTY OR CONDITION OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY. GUTTMAN ENERGY ALSO SPECIFICALLY DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES. YOU USE THIS UPDATE AT YOUR SOLE RISK. This update and any view or comment expressed herein are provided for informational purposes only and should not be interpreted in any way as recommendation or inducement to buy or sell products, commodity futures or options contracts.


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