Pure fuel seems to be to come back up for air?

The promoting for the reason that finish of January has been somewhat unrelenting. And that noticed pure fuel costs sink to a 3½-year low at one level earlier this week. A a lot hotter winter has been all the craze and the shutting down of the Freeport terminal in Texas on the finish of final month didn’t assist both.

However as we close to the bottom ranges since 2020, are we beginning to see a correction to the squeeze decrease in pure fuel costs? That’s actually a consideration whenever you take a look at worth motion as we speak.

All by way of February, the near-term chart exhibits that sellers are effectively in management in driving costs decrease. The bias stayed extra bearish with any minor rallies being offered somewhat rapidly. That’s till we noticed the spike larger as we speak, which not solely took out the 100-hour transferring common (purple line) however can be now contesting a break of the 200-day transferring common (inexperienced line).

Purely from a technical standpoint, that would give some room to work with for patrons – at the very least within the near-term. A sudden shift within the bias may result in a squeeze larger earlier than merchants reevaluate the scenario as soon as once more.

In addition to that, do remember that we are going to see the March futures contract roll over into the April futures contract (that are buying and selling larger) later this week. So, that does add some trickiness in studying the worth motion forward of the top of the month.