Energy prices are slipping once again this morning, after a choppy Monday session that left values essentially unchanged. The $44 mark seems to be the battleground for WTI this week, as we’ve passed back and forth across that level a handful of times in the past 2 sessions. If we see a settlement below that pivot point, it looks likely that we could see a re-test of the June lows now that short term technical indicators are pointing lower, but if we can’t break that mark, we may be stuck moving sideways for a while.
The IEA’s World Energy Investment Report showed that global energy investment dropped 12% in 2016, despite US shale investment increasing. Also, for the first time ever, the agency is reporting that investment in electricity outpaced investment in oil, gas and coal. These low levels of investment in future supply are the root of the Saudi Aramco chief’s argument earlier this week that the world is destined for a supply squeeze in the next several years as global demand continues to grow.
Couche-Tard announced its latest US acquisition this week, with an agreement to buy Holiday Station Stores, continuing a trend of consolidation in the convenience store space in general, and by the Quebec-based retail giant specifically.
The US Dollar and energy contracts – which for years had a strong negative correlation – continue to more or less ignore each other as they each languish near the bottom end of their respective trading ranges.