Despite a solidly bearish inventory report, oil prices are up about 1% this morning on strong export growth by China in December. Exports soared 15%, which was unexpectedly strong. As a result, the focus on demand growth for 2013 is prevailing.… Read more
Energy OverView January 9, 2013
Oil prices continue to hold on to recent gains, hovering just above $93 per barrel. This is despite bearish factors arraying against this valuation. In its short term oil outlook, the EIA significantly raised its outlook for US domestic oil production.… Read more
Energy OverView January 8, 2013
Oil prices ended the day modestly higher, yesterday, and the market is seeing further gains in overnight trading. The snake-bit Motiva refinery experienced another shutdown and delay in putting its new unit into service, and one other small refinery issues helped to support refined product prices.… Read more
Energy OverView January, 7 2013
Oil prices continue to show resilience, maintaining the holiday week gains, which had a good deal of support from the investment community. Speculative length grew to its largest amount in 11 weeks, according to CFTC data. While the rally was dismissed as a low-volume, low-conviction event, there were obviously some eager beavers in there working at some last minute p&l repair.… Read more
Energy OverView January 4, 2013
Oil prices are lower this morning, as strength in the US dollar is weighing across-the-board on commodities. The dollar is higher on the revelation in the most recent FOMC meeting minutes that the current round of QE could end this year.… Read more
Energy OverView January 3, 2013
Crude oil is holding on to most of yesterday’s gains that were struck as a result of the fiscal deal in Washington. Overall, the enthusiasm over the deal is beginning to wane. The reality of looming cuts is finally coming into focus.… Read more
Energy OverView January 3, 2013
Not to be left out of the fiscal cliff party, oil prices have furthered their recent gains, trading above $93.00 per barrel. The fiscal cliff deal is mostly stimulative, with the extension of tax cuts without spending cuts. The lapse on the payroll tax holiday will hurt a little, but not enough to weigh down the overall economy.… Read more