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 firstname.lastname@example.org.