Record demand, record low temperatures and record production as the cold grips the nation and of course the natural gas. Natural gas rallied and broke as traders tried to assess the cold and new data from the Energy Information Administration.
Should $100 oil be forgot and never brought to mind? Oil made one last attempt to go above $100 a barrel but backed off as we end the year. It was a year that saw a surge in U.S. oil production and record natural gas production.
Brent crude went crazy as Libyan oil exports were not to be, and today oil prepares for the Fed meeting. The EIA says that in 2016, crude oil production is expected to be close to the historical high of 9.6 million barrels per day, a record set in 1970.
Crude oil futures prices were under pressure during most of the week, as strong inventory builds and the increasing value of the U.S. dollar eroded crude oil prices. Production growth in the U.S. continues to outweigh solid demand.
A wildly bullish American Petroleum Institute report and reports of refinery issues as well as a blowout had crude go crazy late in the day. The bulls have gripped control as the market has gone out of control.
Since the beginning of February, the discount of WTI to global prices has fallen quickly, primarily because of changes in pipeline infrastructure that has brought cheaper mid-continent crude oil to the U.S. Gulf coast.