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.
The Energy Information Agency shocked the market by reporting that U.S. Crude supply increased by 6.7 million barrels putting supply at the highest level in 82 years. So much for that uptick in gasoline demand.
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.
Oil is up a tad as the EU seems to not to be in a real hurry to pull the plug on Cyprus. The EU did promise to provide liquidity based on the existing rules, which is providing liquidity in the energy markets.
With the election almost upon us, traders and analysts weigh in on how its outcome may affect the currently oversupplied energy market as well as any potential geopolitical repercussions, which have been a major factor in recent years.