The Energy Space
Energy Price Outlook
WTI futures bumped up against resistance from the 50-day MA at the day's high yesterday, but the rally was assisted by favorable news on the Seaway pipeline and some progress made on the fiscal cliff. A breakout above the 50-day will likely require further progress on cliff negotiations as well as signs of economic growth and improving oil fundamentals. At the moment, neither appears to be building momentum as the Empire State survey fell yesterday, and negotiations could go down to the wire at year-end. In the background, pressure will come from growing oil production, elevated oil inventories, and lackluster demand. The positive side will look to improving economic growth in China and Europe and toward weakness in the dollar. We would continue trading oil markets as a trading affair in the near-term, as the market remains fairly priced....2129 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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