Oil weighs refinery restarts against cold weather

Give Thanks!

The API also said crude supply fell by 1.9 million barrels and distillates by a disturbing 4.1 one million barrels. This was especially disturbing consider the forecasts that predict much colder weather. Markets like gas-oil and heating oil and even orange juice soared as reports that old man winter might make his presence known. Not only did the NOAA raise the possibility of colder than normal temperatures in Florida where the oranges might be at risk to a frost, it could take a toll of heating oil supply that is already below normal.

Those fears gain more momentum when as Bloomberg News reported that  -- Commodity Weather Group LLC said December may be colder than predicted in its initial seasonal outlook, which would mean greater demand for energy to heat U.S. homes and businesses this winter. Temperatures for the month are expected to be lower than last year and below the 10-year average, according to the Bethesda, Maryland-based company’s new forecast.

The EU agave the Euro a hiccup as well as the Eurozone’s finance ministers could not agree to another Greek bailout. This comes ahead of more rough negotiations of an upcoming battle of EU fiscal spending over the next few years. Buckle up as the EU merry-go-round will spin. It is amazing the Euro held up as well as it did.

Perhaps it is because of the looming fiscal cliff. Federal Reserve Chairman Ben Bernanke begged the Obama administration to strike a budget deal to avert tax increases and spending cuts that could trigger a recession next year over what he called the “so called fiscal cliff”. Hey Ben , you named it the fiscal cliff!

We should also be very thankful for fracking that has the potential to reinvigorate our economy, create jobs and lead us to energy independence. Yet, Reuters News reports that “Governor Andrew Cuomo said New York will probably miss a Nov. 29 deadline to issue regulations on hydraulic fracturing for natural gas, restarting a public review that may delay drilling for months. The state, which has been studying fracking for more than four years, issued a moratorium in 2010 so regulators could conduct an environmental survey and develop rules.

In September, the Cuomo administration said Health Commissioner Nirav Shah would further analyze the issue with the help of an outside panel, whose members were chosen last week. “We want a proper process,” Cuomo said today on Albany radio station Talk 1300. “We want it as expeditiously as possible. I don’t see how we get it done by next week.” Cuomo, a 54-year-old Democrat who has been mentioned as a potential presidential candidate in 2016, has been under pressure from energy companies and some municipalities in the state’s Southern Tier to allow drilling. They say it would encourage the type of economic development seen in states from Wyoming to Pennsylvania. Environmental groups and residents opposed to fracking sent 80,000 messages to the Environmental Conservation Department during the last comment period. It may already be too late for New York to cash in on the boom that led natural-gas companies to spend $20 billion on leases, drilling rigs and royalty payments in Pennsylvania from 2008 to 2010, and the $5 billion in additional economic output that Ohio is forecast to get by 2014.”

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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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