The Energy Space
Energy Price Outlook
The selloff in oil prices yesterday almost fully unwound the rally made on Monday as the buildup of fear subsided. The market may now be in a similar position as it was on Friday, which basically showed concern about Middle East tensions growing, some hope about a deal to avert the fiscal cliff, growing levels of oil stocks, and increasing oil production. These may all argue in favor of lower prices in the near-term, as the supply/demand balance is still angled toward surplus. Oil inventories will be released today at their normal time, while natural gas will be out today at 11:00am EST. The upside for oil markets rests in the chances for better demand as potentially indicated through an improving U.S. housing market and recovering Chinese economy. API data was positive yesterday afternoon. Technicals are mixed in WTI, with support coming from a bullish channel and the basing pattern at $84.05 while pressure will come from yesterday's hold at the 50-day MA and potential liquidation shown through falling open interest. Prices may fall toward $80/bbl over the next few weeks....1993 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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