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 oil market also got support from the falling dollar but also from tropical Storm Andrea that will slow imports into the Gulf of Mexico. Nat gas got blindsided by a wildly bearish weekly EIA report.
Well a few tweaks to my model and we called the natural gas number right on the button. While my estimate was off of main stream expectations, the market hit a new high for the year on the 146bcf withdraw.
The Brent-WTI spread continued to widen due in part to the growing U.S. oil glut but also because of an increase in the geo-political risk trade. Iran dashed hopes that there might actually be progress with the Iranian nuclear soap opera.