from Dan Norcini:
Hold onto your hat for the wild ride currently taking place in the WTI crude oil market. Yesterday afternoon, the front month soared nearly $1.50/barrel when news hit the wires of a Wall Street Journal “scoop” story that the Obama Administration was supposedly going to relax the export rules to allow two firms to export ultra-light crude. The firms are Pioneer Natural Resources and Enterprise Products Partners. This was regarded as a big deal because the US has not exported oil in nearly 40 years. We can export refined products just not the raw stuff.
Oil spread traders are having a field day on this news.
After being down for the previous two sessions, the price shot up, completely erasing those losses. However, and this is key, the market could not extend past the overhead chart resistance centered near the $107.50 level. It did manage to keep its footing near $107 but as more data hit, this time the storage or stocks number, the market began to slowly retreat.
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