That escalated quickly. The Sept/Oct Crude Oil spread was soaring just a few days ago on tension in the middle east with Egypt protesting and signs of a coup. However, the spread has recently came tumbling down. With winter approaching in the not to distant future and seasonal trends of Crude Oil Inventory storage, now may be a good time to look for a rebound in this spread. The 0.45 level is a strong level that if breached would take the Crude Oil spread back to a trading level that it stayed stuck in for several months. Long the Sept/Oct Crude Oil Spread anywhere in the 0.45 to 0.50 level with a tight selling point at 0.35 may be a good play.

2013-07-28-TOS_CHARTS

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