WTI March September Spread

As a follow up to the chart of March April WTI that we sent Friday, we have attached the March September six month WTI spread chart.

The spread has failed to make a higher high today versus Friday's high even as the front end crude oil flat price has risen by over $2, to its best level in almost 1 month. The March September spread today had a high of $1.70. The high seen Friday was $1.79.

The spread today again bumped against the upper bollinger band on the daily chart. The bollinger band intersects at about $1.68.

Technically the spread has positive momentum. Resistance lies up at $2.20, although it may struggle some at the $2 area. There is a gap from late last week from $1.10 to $1.12, where we see some support.

Is the market's failure to make a higher high today thus signaling less concern about near term supply?

Has the market accepted that Red Sea transits will be hampered, thus delaying some shipments, but that overall supply/production is not in danger?

Has the return of Libyan output and a thawing of temperatures in the U.S. bringing back some production eased supply concerns?

Are global demand woes limiting some of the spread strength?

Disclaimer

This article and its contents are provided for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any commodity, futures contract, option contract, or other transaction. Although any statements of fact have been obtained from and are based on sources that the Firm believes to be reliable, we do not guarantee their accuracy, and any such information may be incomplete or condensed.

Commodity trading involves risks, and you should fully understand those risks prior to trading. Liquidity Energy LLC and its affiliates assume no liability for the use of any information contained herein. Neither the information nor any opinion expressed shall be construed as an offer to buy or sell any futures or options on futures contracts. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy. Any opinions expressed herein are subject to change without notice, are that of the individual, and not necessarily the opinion of Liquidity Energy LLC