It was so cold the politicians kept their hands in their own pockets. It was so cold the Kardasians put some clothes on. Yet where you really could tell it was cold was when you saw the Energy Information Administration petroleum and natural gas reports.
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.
Winter is bearing down on the energy markets and what was and what may be is being most reflected in the natural gas market. Nat gas hit a six-month high as cold temperatures conspired to lower supply to the lowest level since 2008.
Oil has found new life after reports showed that oil supply could actually fall. The Energy Information Administration destroyed that myth after it reported that U.S. crude supply fell by 5.6 million barrels.
Even the bulls are throwing in the towel, yet there may be signs that the crude collapse may slowdown just a bit. Still, oil is headed longer-term toward $88, a target we have had for weeks and now is looking more like we are going to be right on target.