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
Energy OverView December 21, 2012
Crude oil prices tried to fall, yesterday, but a rebound in the Philly Fed Index, a 3.1% GDP reading for Q3 and a rise in consumer confidence all combined to produce a mild rally. Prices even looked to challenge some key upside resistance and go for a run.… Read more
Energy OverView December 20, 2012
Crude oil went its own way for the first time, in a while, yesterday. Prices ignored the fiscal cliff wrangling (which may be instructive for all!) and a bearish weekly inventory report. Prices are higher this morning, rallying above $90 per barrel.… Read more
Energy OverView December 19, 2012
WTI has rallied above $89 per barrel and Brent looks poised to take out $110. Prices are being supported a reported draw in US crude oil inventories by the API last night, as year-end destocking takes place for tax reasons. It appears that all fracking in the world can’t offset the immovable object that is the tax code.… Read more
Energy OverView December 18, 2012
WTI futures mounted a rally that was mostly attributed to progress on the fiscal cliff negotiations. There was another technical aspect at work that helped support WTI at the expense of Brent. A rehash of a story that Enbridge was moving up full operation of its Seaway pipeline to January was around the market.… Read more