Energy Futures Steady After Last Week's Sell-Off

It’s a mixed start for energy markets to start the week with Crude oil and gasoline prices moving modestly lower while diesel prices hold small gains. Prices seem to be stabilizing after last week’s big sell-off, with little news to push values one way or another. 

RBOB prices continue to hold above their weekly trend line, leaving the door open for a push higher as we approach driving season, while ULSD prices remain on the cusp of a technical breakdown that could push prices towards the $2 mark.

Money managers were adding to their net length in most energy contracts last week, pushing the speculative bets on higher gasoline and WTI prices to their highest levels of the year.   That report was compiled on Tuesday just as the selling was picking up steam, so no doubt some of that new money would like a do-over.

Baker Hughes reported an increase of 3 oil rigs and 2 natural gas rigs drilling in the US last week. The Permian basin led the increase with 3 more rigs active on the week.

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