NYMEX surges to new highs

Futures skyrocketed higher today hitting fresh highs on the heels of optimistic feelings about the economy.  After the feel good State of the Union speech, a speculative rally ensued early on and never looked back.  All this amid a very bearish Inventory report that totally contradicted the API’s and most estimates. Crude supplies added 4.8mbls, gasolines rose 2.4mbls and distillates fell only 140k, a stark contrast to the 5mbls projected by the API’s.  The rally carried over into the equities as well that saw the DOW crest above the 12,000 mark for the first time in almost two years.  With the FED saying the economy needs a $600 billion bond buying program; it was somewhat surprising to see the rise.  Ultimately the pressure put on the dollar today appears to be the underlying fuel for the speculative run.  As New England braces for another round of snow and cold, I would not expect to see any decisive moves in either direction in the short term.  At the Close, Crude added $1.14 to $87.33, RBOB soared .0879 to $2.4306, erasing yesterdays losses and HEAT jumped .0769 to $2.6698.