Oil with a new attitude. Oil has got a lot bolder in this New Year as the floor seems to be squeezing the shorts. Obviously right now the market is working off its oversold position as money coming in to the market place seems to be looking for a place to stay. Is oil once again the place to put your money?
Oil rose as the precious metals broke hard and the bond yields seem to rise from the dead. Oil seems focused on geo-political events and that is driving us higher once again. The market had been flat until about 3 am in the morning Chicago time when it took off on more signs that Russia's price dispute over natural gas supplies with the Ukraine is affecting other countries in Europe. Natural gas deliveries from Russia have dropped dramatically to places like Bosnia-Herzegovina, which imports all of its gas from Russia. Reports of falling supply have hit Romania, where volume fell by more than two thirds overnight. The Czech Republic reported big drops as well. All of this tension has captivated the oil market rightly or wrongly.
Who is to blame? Russia is blaming the Ukraine and the Ukraine is blaming Russia. The Ukraine says that Russia is falsely accusing them of stealing gas and says that Russia crudely violated agreements by reducing gas deliveries. But Dow Jones Newswires reported Russia's claims that the Ukraine unilaterally closed down three of four natural gas transit pipelines, thus preventing OAO Gazprom from delivering gas to Europe. I believe Russia is to blame playing the gas card to stir up trouble and to get oil prices higher so they can save their crippled economy. Russia feels that they have everything to gain and nothing to lose as they flex what is left of their energy muscle. They have reminded Europe that even when energy prices are down they are still dependant on them. So far the oil market's reaction is playing right into their hand.
Oh sure, we still have the war in the Gaza strip and Nigeria supplies at risk from Nigerian rebel groups but today it's about the gas and nothing but the gas!
If you want to have a gas you should get your password to Alaronenergies!!!! And also get on my daily energy blast! But if you really want to gas it up, then call me at 800-935-6487 to open your trading account. And make sure you're signed up to get the Fox Business Network where you can see me everyday!
We're short February crude on the triple rollover from apprx 4461 - stop 5100!!!
Stopped on short February heating oil from apprx 15000 at apprx 15300. Buy February heating oil at 14700 - stop 14400.
We're short February RBOB from apprx 12000 - stop 12560.
We're long February natural gas from apprx 550 - stop 500.
Have a GREAT day!