Clearly the heating oil market drafted off the gasoline market in the prior trading session. It is also likely that favorable US equity market action and the EnBridge outage provided some spillover buying of heating oil. However, with the July Heating oil market to the Tuesday high, sitting as much as 29 cents a gallon above the May lows, the market might have reached a short term overbought zone on the charts. While some markets tried to put a positive spin on the Greek debt situation this morning, a long list of physical commodity markets are starting off weaker this morning, despite a weaker Dollar and that would seem to point to a measure of bearish control. Initial support in the July heating oil contract is seen down at $3.0325 and then again down at $3.0145.
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