The energy markets are really moving today, with AUG13 crude oil now trading up $1.31 to $107.80. We believe this market could quickly approach $110. Heating oil is another related market that has been on fire recently.
While manufacturing reported weakness caused a drop in oil, heating oil led a product comeback. Yet it was natural gas that quietly closed above $4.00 that was perhaps the most interesting move of the day.
The petroleum markets are having a hard time deciding whether they should rally on the cold temperatures, or sell-off on a forecast that puts most of the eastern half of the United States to back above normal temperatures.