April crude futures on NYMEX opened 1 cent lower at $98.80/barrel Monday
and then drifted up 20-30 cents, as geopolitical headlines in the Middle East
continued to support the complex at near-record highs, while heating oil and
gasoil gave support as well, with the gasoil front-month contract reaching a
new record-high level.
"Geopolitical risk fluctuations related to the recent incursion of Turkish troops into northern Iraq could provide a feature in this week's trade. Talk of renewed sanctions against Iran related to the country's nuclear efforts could also force some fear-premium expansion," Jim Ritterbusch, an independent energy consultant, said in a report.
The front-month gasoil contract on ICE hit an all-time high of $901.25/mt in overnight trading, and heating oil on NYMEX settled at an all-time high of
$2.7630/gal Friday as bullish weather on the US Atlantic Coast prompted fresh
demand for the fuels.
With US gasoline stocks sitting at a 14-year high, the RBOB contract firmed slightly on Monday. The renewed strength in RBOB futures Monday morning was price-supportive for crude futures--as opposed to last week when sluggish
gasoil demand growth statistics provided a bullish signal to the complex.March RBOB futures on NYMEX opened 13 points higher at $2.5350/gal.
Front month heating oil traded at 2.7550/gal, down 80 points.
"We will be looking for continued extreme volatility in the heating oil to RBOB spread differentials," Ritterbusch added.
and then drifted up 20-30 cents, as geopolitical headlines in the Middle East
continued to support the complex at near-record highs, while heating oil and
gasoil gave support as well, with the gasoil front-month contract reaching a
new record-high level.
"Geopolitical risk fluctuations related to the recent incursion of Turkish troops into northern Iraq could provide a feature in this week's trade. Talk of renewed sanctions against Iran related to the country's nuclear efforts could also force some fear-premium expansion," Jim Ritterbusch, an independent energy consultant, said in a report.
The front-month gasoil contract on ICE hit an all-time high of $901.25/mt in overnight trading, and heating oil on NYMEX settled at an all-time high of
$2.7630/gal Friday as bullish weather on the US Atlantic Coast prompted fresh
demand for the fuels.
With US gasoline stocks sitting at a 14-year high, the RBOB contract firmed slightly on Monday. The renewed strength in RBOB futures Monday morning was price-supportive for crude futures--as opposed to last week when sluggish
gasoil demand growth statistics provided a bullish signal to the complex.March RBOB futures on NYMEX opened 13 points higher at $2.5350/gal.
Front month heating oil traded at 2.7550/gal, down 80 points.
"We will be looking for continued extreme volatility in the heating oil to RBOB spread differentials," Ritterbusch added.
