Oil rings in the New Year with fresh gains

Fireworks to ring in the New Year!

We saw a lot of fireworks this New Year's Eve but perhaps the most spectacular were the missiles fired from Iran. Yes Dubai, they even topped you.

As the United States moved forward on more sanctions, the Iranians threw a New Year hissy fit celebration. Yet to attribute the entire spike in the petroleum complex to Iran means that you have not been paying attention. Commodities are on a tear as investors seek yield and shelter from the geo-political storms. We have had stronger than expected manufacturing data across the globe from China, India and the UK. We also have the fallout from the Petro Plus refinery closing as the unions threaten a strike that could cause a major shortage in global supply similar to what we saw last year when we saw European refineries go on strike. Add to that traders are looking to make some money in the New Year and it looks like, at least in the beginning of the year, commodities are going to be the place to be!

Natural gas bulls we're looking for the EPA to bail them out with new clean air regulations. Well that is not going to happen as soon as some were hoping. Reuter's News reported that a U.S. federal appeals court on Friday issued a last-minute order delaying the Jan. 1 implementation of an Environmental Protection Agency rule affecting coal-fired power plants, according to a court filing. The Cross-State Air Pollution Rule was opposed by more than a dozen states and power companies. In fact many coal plants may have had to close.

Phil Flynn is senior energy analyst for PFGBest Research and a Fox Business Network contributor. He can be reached at (800) 935-6487 or at pflynn@pfgbest.com.

About the Author
Phil Flynn

Senior energy analyst at The PRICE Futures Group and a Fox Business Network contributor. He is one of the world's leading market analysts, providing individual investors, professional traders, and institutions with up-to-the-minute investment and risk management insight into global petroleum, gasoline, and energy markets. His precise and timely forecasts have come to be in great demand by industry and media worldwide and his impressive career goes back almost three decades, gaining attention with his market calls and energetic personality as writer of The Energy Report. You can contact Phil by phone at (888) 264-5665 or by email at pflynn@pricegroup.com. Learn even more on our website at www.pricegroup.com.

 

Futures and options trading involves substantial risk of loss and may not be suitable for everyone. The information presented by The PRICE Futures Group is from sources believed to be reliable and all information reported is subject to change without notice.


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