Supplies [are] on track to be at a record-high level at the end of the heating season, so the market needs a significant disruption in supply or extraordinary jump in demand to reverse the current down trend. |
Temperatures in the Northeast and Midwest were expected to remain above normal for the next 10 days. |
The comments from OPEC officials are taking some of the froth off last week's rally. It looks like OPEC is set to roll over the existing production quota at the meeting this week. |
The conclusion is probably being made that any surplus will be promptly sopped up as soon as seasonal demand kicks in. |
The current perception is that there is enough crude and heating oil around, thus the slide in prices. |
The effects of Katrina will be felt throughout the economy, reducing demand and keeping a lid on energy prices. The federal government is ready to release barrels from the Strategic Petroleum Reserve and there is significant help coming from abroad. |
The elements that brought us here are still with us. The world economy is chugging along, which is leading to increased demand. The stock and bond markets aren't so attractive that all of the funds are going to exit energy. |
The Governor of Nigeria doesn't think that militants are set to attack again soon and that has apparently prompted a little profit taking in front of tomorrow's reports. |
The latest national Weather Service outlook is forecasting below-normal temperatures through February 21st, but an arctic cold blast is not expected. |
The market got ahead of itself earlier this week. With the world in its present state a move into hard assets makes complete sense. Any decline in oil should be looked at as a buying opportunity. |
The market is at a do-or-die moment. There now has to be a decisive move to take out the recent highs or the market will take its cue from the fundamentals, which are bearish. |
The market was overdue for a correction, after sliding steeply from a peak of $15.78 just over two weeks ago. |
The mild weather and contracting demand are continuing to send us lower. Crude oil will soon test $56 and the products $1.50. |
The real dichotomy in this market is that crude inventories are very high and that could make for some violent, back-and-forth price action. For the foreseeable future, the path of least resistance remains up until there is a significant structural economic or political shift. |
The spillover from the rest of the energy complex will be too great to overcome. |