Crude: quality over quantity II

May 18, 2017 11:39 AM

Crude: And another month bites the dust. It’s hard to believe that we’re already moving along to the CLN7 contract. We now pivot past the last month of the year and that should be worth something to everyone trying to play the cash and financial markets. We kick off with resistance here at 5008, 5145 and 5250. We’ll look back lower to support at 4936, 4855 and 4770. We’ll also change the lead spread and the front spread moves up to CLN7/CLQ7 and starts with resistance at –22, -16 and +15. Support comes back to –35, -48 and –57. Let’s get this week done right and the new contract back in play. Don’t lose your way; follow the Dollar, follow the dream. 

Gasoline: OK laziness has been set aside and I’m moving ahead of the RBM17 contract. We can start with resistance here at 15950, 16145 and 16366. Support looks below to 15788, 15585 and 15360. The front spread moves to RBM7/RBN7. Resistance at +25, +110 and +200. Support to –55, -124 and –190. The RBN7/CLN7 gets resistance at 1813, 1885. Support falls to 1730, 1675. 

Distillate: The calendar keeps us moving and we are focused on the HOM17 contract. We’ll get resistance here at 15275, 15460, and 15665. Support looks back to 15070, 14875, and 14655. The front spread bumps up to HOM7/HON7. Resistance here looks at – 48, +35. Support holds down to –76, -88. The crack moves up to HOM7/CLN7 Resistance at 1560, 1611. Support back to 1489, 1410. 

Macro Fundamentals: Hmm, I guess we can call this the “Trump slump”. People need to get over the fact they elected this man President and that’s that. Same thing with the stock market. Look, we hit a record high on what sure looks a lot like a bubble, there’s going to be a correction. Ask anyone that went long $147 WTI. Let’s skip the blame game and move on. Actually, the Fed couldn’t ask for a better time to raise rates. Weak USD, great economic conditions and they are supposed to ignore the stock markets. We get Jobless Claims (240K) at 8:30 a.m. ET and Leading Indicators (0.3) at 10:00 a.m. 

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About the Author

Carl Larry is Director of Business Development Consultant for Oil and Gas at Frost & Sullivan. Follow him on Twitter (@oiloutlooks) or on his website. He can also be reached at