The Energy Report - Report Contortions
By Phil Flynn | December 11, 2012 12:26 AM EST
It is a dilemma. What economic report should we focus on? Or should we just count barrels. This is the question that traders have to ask as the market has a mountain of supply and is either in desperate need of demand or some massive economic stimuli pick me up.
The much awaited jobs report blew away expectations on Friday yet a plunge in consumer confidence raised fears about our future. Then China's factory output surged 10.1 percent in November and retail sales rose 14.9 percent. But then China's exports growth slowed sharply to a much lower than expected 2.9 percent in November. Is it any wonder why we are in a trading range? If that wasn't enough, overnight Italian Prime Minister Mario Monti said he lost support and will resign and we haven't even started talking about real barrels of oil.
Oil inventories surged last week and we should see a continuation of bountiful supply. Look for crude to be up 1.0 million, gas up 2.0 mb, distillates up 2.0 and runs steady.
Of course the increase in supply won't make for a happy OPEC meeting but there is little that they can do about it. Risng US production and the possibility of lost market share should keep them in line. In Venezuela Hugo Chavez picks a successor, a sign that his cancer may be terminal. That raises the possibility of turmoil in that country and may be an interesting sidebar at OPEC.
As far as the rest of the geopolitical story, it seems that President Morsi backed down a bit when the Egyptian military sent him a message. The BBC says that Egyptian President Mohammed Morsi has ordered the military to maintain security and protect state institutions in the run-up to a controversial referendum on a new constitution. The army has also been given the power of arrest. Mr. Morsi has tried to calm public anger by annulling a decree giving him huge powers but rejected a call to scrap the 15 December constitutional vote. Opposition leaders rejected the move and called for protests on Tuesday.
Reuters is reporting that South Korean refiners will cut imports of Iranian crude during the six months leading to May by about a fifth from a year earlier, to avoid sanctions by Washington, government and industry sources told Reuters on Monday. Last week the United States granted 180-day waivers on Iran sanctions to China, India, South Korea and some other countries after they cut oil purchases from the Islamic Republic. "The cut in next year's imports is expected to be by about 20 percent year on year," an industry source who has direct knowledge of the matter told Reuters.
Make sure you are getting the Power to Prosper! Tune to the Fox Business Network where you can see me every day! Also make sure you open your Price Futures account today and get a trial to my Daily Trade Levels! Just email me - Phil Flynn - at firstname.lastname@example.org or call me at 888.264.5665. Open a Trading Account in 15 minutes! Apply online: https://newaccount.admis.com/?office=269 Here is the PDF version:http://www.pricegroup.com/ADMIS/ADMIS%20Account%20Application.pdf
Most Popular Slideshows
- NFL MNF: Pittsburgh Steelers 30, Houston Texans 23 [PHOTOS]
- 2014 MLB World Series Game 1: San Francisco Giants 7, Kansas City Royals 1 [PHOTOS]
- 2014 MLB World Series - Game 2: Kansas City Royals 7, San Francisco Giants 2 [PHOTOS]
- Prince Harry Kissing Mystery Blond, Cressida Bonas & Camilla Thurlow Are Distant Memory
Join the Conversation
- ASUS Releases A Teaser Indicating The Arrival of New Zenfone and ZenWatch On October 28
- Boy Stoned To Death For Alleged Rape, Victim Receives Dowry From Militants
- Xiaomi Redmi 1S vs. Sharp Aquos Crystal – Specifications, Features And Price Showdown
- Three Dual SIM Samsung Galaxy Note 4 Duos Variants Comes To China
- Russia is Creating Underwater Combat Robots to Protect its Arctic Territories
- ‘Lone Wolf’ Attack on Canada Parliament Hill Could be ISIS-Related
- Swedish Military Spots ‘Russian Submarine’ Off Stockholm Coast, An Alarming ‘Security Game Changer’