The bulls are taking back control of energy markets to end the week, wiping out most of the heavy losses from earlier in the week and keeping the up-ward trend lines on the weekly charts intact. Strong oil import data from China, a strike threat from Nigerian oil workers, and new tensions in the middle east are all contributing to the rally the past two days. Now that the threat of collapse has subsided, the question for next week will be whether the bulls have enough momentum to try and break the resistance set in November, or if we’ll be stuck back in the range-bound trading through the holidays.
Winter is finally arriving for much of the country as a storm is blanketing much of the Eastern US with snow. Houston actually got snow overnight which means it’s highly unlikely your refiner’s sales rep will be available if you need them today. The system could also be a demand killer over the next few days as it is forecast to hit many of the country’s largest metro areas.
RIN Prices continue to tumble today after Senators from states with lots of oil and oil refining said the President was open to talking about changing the RFS. Senators from states with lots of corn who didn’t attend the meeting said it was a waste of time. D6 ethanol RINs have fallen from 90 cents a week ago to 75 cents this morning.
The November jobs report was positive with payrolls increasing by 228,000 and the headline unemployment rate holding steady at 4.1%. The unemployment rate labeled U-6 by the BLS, which is known by some as the “real” unemployment rate ticked higher by .1%.