oil blowoutHOJ0 [NYMEX heating oil April 2010] is up 35bps while CLJ0 [NYMEX crude April 2010] is up 138bps. More impressive is the fact that crude has retraced all of yesterday's losses while heating oil is fighting to break even.

Round number hypothesis: APR crude reverting back to 80 while there is no real trigger price for heating oil?

Not sure it has anything to do with inventories since the initial reaction was lower.





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1 Comment so far

  1. William Archer on February 24, 2010 11:37 pm

    Prices for RBOB was down too… very odd…
    I am new to finance and trading. Would anyone be so kind to explain to me what support crude oil market has at this price level?
    In my view, the fundamental is def bearish. French strike is almost over. North sea production disruption has resumed. Middle east is relatively stable.
    The EIA report showed crude stock has been going up. Distilled, Gasoline, and heating oil inventory went down. But from I read, the demand has barely changed. Draw on inventory could cause the price to go up, but for one dollar?
    Euro/U.S. FX has heading down to 13473 at the moment.
    How is April crude still trading at 7983?


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