Good evening everyone. Due to the holiday schedule the Energy Thursday reports have been thin. Therefore I will give a little catch up starting with today, crude oil touched the $80 mark, but closed relatively flat at $79.36. Last time I was typing we were in the low $70's holding out for the low $65 mark, but things have ramped up as inventories have shrunk and trade has been thin. It was draws across the board in this weeks DOE report, 1.5 million on crude oil, 300,000 on gas, and 2 million on diesel. U.S. crude stocks fell last week as refiners increased runs, overcoming the increased crude imports. Gas and diesel had draw downs amidst the cold weather and holiday travel. Nothing shocking as expectation were met, but one thing to consider is refinery runs remain 7% percent blow normal for this time of year, while inventories are still considered high, stocks keep chipping away towards average. Oil rose 14% in the past two weeks. As Les Klukas of Country Hedging will explain in the attached video this is some what expected in the short term as the year closes; but wait to lock in your spring gallons until the market provides its next dip. The dip is predicted in the coming month or so. Time will tell what happens in energy, but for now inventories still remain high, demand is still down from last year on diesel(which wasn't exactly a banner year), and the economy is still looking for direction. A new year is upon us and expectations of some early buying opportunities are anticipated.
Thanks for reading over the past few months, hopefully I have been able to convey some useful energy information. Comments or questions are welcome, thanks again.
Happy new year to all and to all ....
Zach
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