Crude oil futures are struggling to stay in positive territory after mixed API and EIA inventory reports. With crude oil builds likely to come across the month of January, the market is once again discounting most of the API draw in crude oil.
The Arctic blast that has descended on the U.S. has been impacting commodity markets in more ways than one. Volume seems lighter perhaps causing a flash crash in gold and regional spikes in natural gas prices that will soon cost consumers plenty.
The New Year is bringing clarity to the oil market and maybe to the stock and gold market as well. Oil prices got hit hard as weak data out of China and the reality of abundant supply stated to weigh on market sentiment.
After a strong round of profit-taking selling , the oil complex is starting the New Year in negative territory once again. Heading into 2014, the oil complex will continue to focus on the ongoing geopolitical issues.
We start the New Year with the U.S. better supplied with oil than at any time in history. Now the market will focus on the demand side as we start the slow road back to normal markets after the extended holiday trade.
Oil is getting a yearend squeeze as inventories fall and geopolitical risks seem to be rising. War in South Sudan, a terror attack in Russia and labor trouble in Libya are giving the bulls a little ride.
Rising yields should be raising eyebrows not only on the explosive stock market but also the global oil market. Oil tries to test $100 a barrel on light volume as the focus seems to drift away from inventories and more to a rising stock market.