We had a technical reversal yesterday, where prices shot up to nearly $140 a barrel a few minutes before Nymex floor trading began, but closed 25 cents lower on the session and under $135. What a day!
MF Global energy analyst Ed Meir says today's action may confirm whether yesterday was really the intraday reversal that will take prices lower from here.
We're expecting more volatility today with the expiration of July crude options. And there's a great deal of open interest at $135 calls strike, but we'll see if prices get back there.
Crude oil, gasoline and heating oil are lower this morning but natural gas futures are bucking the trend. Natural gas prices are up over 70% so far this year, while crude is up nearly 40%. So if you want to play energy without the intraday volatility, for now , it seems natural gas is the place to be.
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