Distillates (heating oil, diesel fuel, jet fuel, etc.) extended its major (long-term) uptrend during May with the spot-month contract hitting a new high of $2.0810 before closing at $2.0383. There is a line of old highs near $2.13, dating back from April 2019 through January 2020 the spot-month contract could test during June or July. However, with monthly stochastics already well above the overbought level of 80%, sellers could soon move into the market. Fundamentally distillates is not as bullish as crude oil with the forward curve (see second chart on website) showing a slight carry from the July contract through October.
The market’s weekly chart is in posit to confirm a secondary (intermediate-term) downtrend over the coming weeks.
