This week’s trade in energies could see a mixed trend overall, but selling rallies may still be the most attractive trade at the moment. WTI will find key resistance at the 50-day moving average at $88.20 while strong support will be at the bottom of a bullish flag pattern at $86.20. A busy week is in store, as the weekend’s Chinese economic and trade data will be digested on Monday.
Natural Gas traded lower settling $3.666, down $0.034 (0.9%). The curve was weaker, 13/16 down $0.03. Hub cash was weaker, ~$0.20 back this morning, Z-6 down $0.40 to $3.90 as temps are running 10-15 above normal in major Northeast/Midwestern cities through Monday.
The oil market is a tough call today and could potentially rebound amid channel line support and today’s non-farm payroll report. The channel offers support at $86.10/bbl in WTI, while we think that the payroll report could be spun favorably even if it misses estimates due to superstorm Sandy.
The overnight market have once again shown some signs of life in the soy-complex as this market seems to be the only market that has global interest. The beans as of 8CST are trading +6-9, meal gained $1.50-2, oil increased by 25-30 points, corn is virtually unchanged…again and wheat is up 2-3.
Oil prices may fall slightly in the near-term, as pressure is offered by technical factors and the lack of progress in fiscal cliff negotiations. Background pressure will come from next week’s OPEC meeting where quotas are expected to be left unchanged, and from the growing amount of U.S. oil production.
I am going to present the wire in a little different slant today, as I mentioned last week we are going to try some new approaches of doing things as we head into the New Year and since markets are as slow as they are I thought we would try a few new things.
Energy Price Outlook Oil prices may fall slightly in the near-term, as pressure is offered by technical factors and the lack of progress in fiscal cliff negotiations. Background pressure will come from next week’s OPEC meeting where quotas are expected to be left unchanged, and from the growing amount of U.S. oil production. These could take WTI down toward the $85.00/bbl level through year-end unless a fix to the
The overnight trade is starting the month of December with renewed hopes that December of 2012 will give a Christmas present like the December of 2011. The beans are already +20, meal has gained $5, oil has posted gains of 70 points, corn is pushing 10 higher and wheat is also +10-12.
Oil prices are likely to hold within their relatively sideways direction in the near-term, as support from a weaker dollar is countered by uncertainty over the fiscal cliff. WTI had a nice bounce early in the session yesterday but fell back to close near the day’s low
Daily Energy Report – The selloff in oil prices yesterday almost fully unwound the rally made on Monday as the buildup of fear subsided.
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