Oil prices seemed to catch-up to the rest of the markets, yesterday, falling around 1% and staying down, despite recovery in other markets. A forecasted break in the cold US weather seemed to weigh on prices, but the reality of the return of the polar vortex and rare snowstorm for Houston has reversed yesterday’s losses. The distillate demand being generated by the cold weather has evidenced itself in a spike in cash market prices in New York for heating oil, and the reality of barrels of fuel being profitably arbitraged from Europe to the East Coast was also a bearish factor.
Energy Overview — TotalView™ of the Energy Markets