Broad Energy Market Summary: The dollar stemmed any further buying in energy complex. Milder weather and high inventories also lent support to the downside.
Specific Energy Market Summary:
Crude Oil (DEC) For week: Open 79.65 Close 77.05
After trading above 80 on Monday, crude had a hard time bouncing back above there, failing two separate times this week. The strength in the dollar certainly curbed buying in crude. This was the worst week in October for crude. 44% of traders surveyed have a short bias currently. Inventories on Wednesday rose, adding to already above average stockpile. Crude is getting into a gray area where good economic numbers show an increase in demand but these higher prices also damper growth.
Heating Oil (DEC) For week: Open 209.65 Close 201
Heating oil was off fairly big this week, down almost 5%. We were trading at contract highs before selling off due to a stronger dollar. Heating oil is now trading back at the same levels we saw two weeks ago. Supplies for distillates declined 2.13 million barrels to over 167 million barrels. Inventories are still well above averages. Heating oil is still trading above the important technical level of 205.50.
RBOB (DEC) For week: Open 204.25 Close 196.19
After hitting contract highs on Monday, RBOB sold off all week. We closed below the $2 mark for the first time in a week. We are trading near the old resistance/new support of 194.75. Any break below will signal a new bear trend. Higher inventories coupled with the lower dollar pressured RBOB, just like rest of the energies. There could be a head and shoulders forming, we will found next week.
Natural Gas (DEC) For week: Open 544.9 Close 504.2
Natural gas was the big loser in the energy complex this week. Besides the dollar, milder weather and ample supplies set natural gas to our lowest levels since mid September. The 495 mark is support, for now. We are still well above the lows of early September. We are getting close to storage capacity, which is normal going into winter.
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