Futures slip as cold blankets East

Posted by Mark Pszeniczny on Dec 10, 2010 9:56:00 PM

It appears to be the Oilman’s triple play today with Cold air, no snow and a falling market.  All we can say is Finally!  Early morning gains were wiped away upon news of the US trade deficit lowering and turning the dollar higher.  After yesterdays jump from what appeared to be a refinery issue (Fundamentals weren’t dead, they were just napping)  todays losses were a welcome sign.  As OPEC is scheduled to meet this weekend, the group is not expected to make any rate changes but they almost always throw their two cents in on prices.   With Crude hovering around the $90 mark, well above what most accept as a “reasonable” priced barrel, we can expect that the cartel will confirm the market is fairly priced.  Chatter is still surfacing that $100 Crude will be the average over the next 12 months, largely based on the assumption that demand should increase.   Awful lot of assumptions being made to hold this market this high.  At the end of the day, CRUDE fell .58 to $87.79, RBOB lost .0312 to $2.3093 and HEAT slipped .0093 to $2.4575. The week was largely a see saw finishing up around the same spot where we started, breakouts usually follow.

Topics: HEAT, CRUDE, The Market

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