Heating Oil is too hot to touch

The picture below shows Heating Oil’s story of mean reversion and its recent bounce, now trading at some stretched percentages above a specific mean.

Observe the pendulum. Going long here doesn’t provide a margin of safety.

My Macro Extremes’ publication from this past weekend listed Heating Oil, Gasoline and Distillates returning to Overbought territory.

August 1, 2023

by Rob Zdravevski

rob@karriasset.com.au