Energy Markets in a State of Confusion

On January 27, 2014 by TradingDesk

Energy markets remain in a state of confusion this morning, as the two sides of the barrel struggle for control of the action. The effects of the latest cold snap continue to be felt far and wide, as Natural Gas prices broke $5 on Friday for the first time since 2010, and prompt diesel values now trade 15 cents above 1 month forward values as suppliers race to keep up with heating demand.

Although the moves have been extreme, and have demonstrated the vulnerabilities of the US system so reliant on producing energy on the Gulf Coast and transporting it to the East Coast and Midwest, forward curves are still suggesting the effects will be short lived and lower prices are coming. With only 5 trading days left on February RBOB and ULSD contracts and US equities suddenly appearing vulnerable after a week of harsh selling, the potential for another slide in prices is growing.

CLICK HERE for a PDF of today’s charts

Market Update (3)

Doc1

Doc2

Commitments of Traders Charts:

 http://www.cftc.gov/marketreports/commitmentsoftraders/index.htm

 

Doc3

Doc4

Doc5

Doc6

Doc7

Doc8

Doc9

Comments are closed.