Before I get to the energy news, I want to thank you for the overwhelming response to my holiday themed Energy Reports. I am glad that many of you had as much fun reading them as I did writing them. I especially got a lot of response from my traditional “Energy Report for Christmas” that takes current energy and economic news to the “T’was the Night Before Christmas” poem.
Yet, even though I have kept the tradition of writing that every year, I felt bad because I did break a tradition of saluting out troops in the report. This year in a tribute to the Trump tax cuts, I cast the President as Santa and ended with “But I heard him exclaim, as he went out of sight, America will say Merry Christmas again and to all a good night!”
The line fit but then I remembered another Christmas in the aftermath of the Sept. 11 attack back in 2001. While even though the shock of the attacks were still fresh in our minds and the report parody mood was light, yet I ended the report with a prayer for our troops and have ended the Energy Report Before Christmas the same way every after until this year.
Yet, even though I technically broke that tradition, I want to keep that tradition alive. So, I will end this thought with thanks to my readers and a prayer for our troops. So, in that spirit, here it goes, “Our troops are fighting in lands far away, so remember to pray for them each passing day, it is for freedom that they put up this incredible fight, so to them and all of you Merry Christmas and Good Night.
The big question for energy traders this week, is whether or not WTI crude can post a $60 print. We thought, of course, that we should have seen a $60 print already but most of the bullish momentum has gone to the Brent crude this year and it will take a bit of time for WTI to follow.
Part of the reason for the WTI crude weakness of course has been U.S. shale and while traders and hedge funds have overestimated shale's flexibility and production potential, industry insiders have not.