Energy Market Updates

Futures Rise as Cliff gets Less Steep and DOE's Draw

Posted by Mark Pszeniczny on Dec 19, 2012 5:40:00 PM

Overnight trading set the tone for much of todays session as early markets were up well over two cents on both products. News out of European Markets showed that Greece's credit rating had been upgraded along with an unexpected increase in the consumer confidence among Germans had pushed the US dollar lower. Commodities were the unfortunate collateral damage in this scenario. More importantly, it appears that some movement by GOP leaders to increase taxes on those Americans making over $1 million a year (Phew, I'm safe!) has been seen as a major concession in the stalled talks. Again, Bullish on Commodities. Lastly, the DOE's released the weekly numbers that showed draws in distillates and Crude, -1.1mbl and 949k respectively, with a modest build in gasolines, +2.2mbl. The report was viewed as Bullish by most even with Crude missing the expectations of a 1.3mbl draw, evidence of the mentality of the day already given up to higher prices. Look for action to continue higher as a historical light trading week winds down and HO stays well within the 2.90 to 3.10 range we have been in for the last 90 days. At the close, Crude gained $1.58 to $89.51, Heat added .0391 to $3.0356 and RBOB led gaining .0522 to $3.7431.

 

DAILY HEATING OIL CHART

12_19

 

RBOB CLOSE
CLOSE CHANGE
JAN 27431 +.0522
FEB 27338 +.0496
MAR 27412 +.0495
APR 28792 +.0582
MAY 28719 +.0499
JUN 28406 +.0486
HEAT CLOSE
CLOSE CHANGE
JAN 30356 +.0391
FEB 30313 +.0374
MAR 30176 +.0353
APR 29965 +.0355
MAY 30258 +.0352
JUN 30077 +.0345

Topics: Fiscal Cliff, Dollar falls, DOE, Crude draws, Tax Increases

    Energy Market Updates

    The information contained in this report has been taken from trade and statistical services and sources believed to be reliable. Dennis K. Burke, Inc. makes no representations or warranties with respect to the content of such news, including, without limitation, its accuracy and completeness. This bulletin is provided for informational purposes only, and is not intended as a recommendation to buy or sell commodities.

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