The Energy Space
Energy Price Outlook
Oil prices may continue their decline in the near-term, as pressure comes mainly from technical factors and uncertainty regarding the fiscal cliff negotiations. The ADP payrolls were less than expected yesterday, which sets up for a disappointing payroll number on Friday. However, many discounted the ADP due to Superstorm Sandy, which may reduce the influence of Friday's payrolls as a result. Background pressure will be offered by elevated U.S. oil production, building inventories of gasoline, weak demand for products, and the likelihood that next Wednesday's OPEC meeting leaves production unchanged. Support from yesterday's strength in the stock market and/or events in Egypt failed to gain much traction in the oil trade yesterday. We would look for the downward trend to continue and for WTI to fall toward the $85.00/bbl level until a fix to the fiscal cliff is negotiated....2128 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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