March April Heating Oil Spread

The March April Heating Oil spread topped out last Friday near 7.5 cents, following a similar scenario seen in NG, as concerns over the impending very cold wave reached a peak.

The spread has negative momentum now, but has fallen to what was prior resistance in the 5.50 cent area. If broken, the next support is seen in the 4.70/4.85 cent area.

A move back over 7 cents seems unlikely currently given the warm up that is forecast for the end of this month and again in the week of February 7 to 13.

In support of the spread, though, are the various refinery issues that have sprouted up this week as a result of the severe weather that impacted some refining units in the Gulf Coast.

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