Let’s kick off this last quarter of 2014 right.
See, this is the quarter when we get to see those thousand page reports on the forecasts for 2015. This is when all of those overpaid commodity analysts get to tell the trading community how it's going to be. They’ll throw out charts and statistics that are going to back each other up. We’ve already heard about declining demand and $80 oil.
How the world is going to grind to a halt, U.S. oil production is going to become unprofitable and we’ll be once again leaning on the great and powerful OPEC to be the best barrel out there. Hold on there Cassandra. First off, we’d raise tariffs on foreign imports before we would let our pride and joy of US crude oil production fall apart. We’ve been doing a fine job of shuffling our feet over Canadian imports rising by holding back on Keystone.
If domestic production were even close to having to pull back, I think Big Guv would eliminate the export ban altogether and try to balance our GDP with exports keeping up with imports. 2015 is going to get higher oil prices and I’m in the $104 area.
Crude: I suppose we can hit the reset button here and start with a clean slate. The RSI is now weakened from its neutral state and we’ve managed to erase all the gains we worked back from hitting support back when we took the previous trading month off the board.
Gasoline: We’re moving ahead to the RBX4 contract as cash trade moves ahead too. We’re looking to resistance at 24230, 24478 and 24664. That will give us some room to look back down to support at 23828, 23677 and 23468.
Distillate: Whoops, I must have been really sleepy last week to plug in the CL instead of HO here. Well I must have been thinking about the solid trend lower on this chart. We’re looking at support to 26072, 25945 and 25790.