New York--May 14--NYMEX crude and product futures are seen higher today,
extending Thursday's gains in technical follow-through. The market is also
focusing on Monday's expiration of Jun crude options, which some brokers said
could help boost the contract to hit $18.50.
* * *
Jun crude continues to trend upwards, extending a third session of gains
following firm overnight trade with the contract hitting an Access high of
$18.40.
NYMEX Jun crude ended the overnight Access session up 16c at $18.19. Jun
heating oil ended up 3 points at 43.60c, while Jun gasoline ended up 41 points
at 52.75c.
"We had a good close yesterday. This is mostly a technical follow-through,"
one broker said. "On the charts, it looks like the correction is over."
Jun crude is expected to test resistance at $18.35 and later at $18.57,
which some brokers said the market is aiming to hit ahead of the expiration of
Jun crude options.
As of the end of Wednesday's session, open interest fell 1,582 contracts to
13,040 on $18.00 calls and fell 245 contracts to 11,095 on $18.50 calls, while
open interest dropped 2,010 contracts to 12,991 on $17.50 puts and dropped 824
contracts to 12,208 on $18.00 puts.
However, several brokers said the market could rise early but see a pullback
later with crude prices pushed down to test support at $18.10 and later at
$17.85.
"Initially the market is expected to make a good run but later we might see
a pullback," a broker said. "It's going to be hard to sustain this level we are
in right now."
Meanwhile, the June loading program for Norway's Oseberg crude oil schedules
the equivalent of 17 standard-sized 500,000 barrel cargoes to load, down 45% on
May loadings, according to an equity holder in Oseberg.
UPCOMING:
--Jun crude options expire Monday. Jun crude futures expire May 20.
--Jun product options expire May 25, while Jun product futures expire May 28.
|
