Energy Market Recap - 1/3/2017

January 3, 2017 3:38PM CST

February Crude Oil closed down 1.23 at 52.49. This was 0.38 up from the low and 2.75 off the high.

February Heating Oil closed down 4.55 at 168.27. This was 1.06 up from the low and 8.20 off the high.

February RBOB Gasoline finished down 4.45 at 162.64, 8.31 off the high and 0.95 up from the low.

February Natural Gas finished down 0.41 at 3.32, 0.25 off the high and 0.05 up from the low.

 

Crude oil has started out 2017 with an abrupt change of fortune as the market went from challenging the mid-December highs to falling more than $3 and sliding well into negative territory before finishing Tuesday's trading session with a heavy loss and a reversal. Optimism that the Oil Producers agreement would lead to definitively lower output was bolstered by news that both Kuwait and Oman made production cut as scheduled at the start of this year. However, a strong ISM manufacturing survey raised the chances that US crude production will also be ramped up this year as well, and along with a stronger Dollar sent crude oil prices sharply to the downside with a daily trading range much larger than last week's entire trading range. Both product markets have seen outside day down price action from their highest price levels since 2015. Natural gas was squarely on the defensive all day with Tuesday's massive loss taking the market back to its lowest price level since late November. A warmer shift in longer-term weather forecasts for much of the US will dampen heating demand and should lead to a sizable decline in the size of weekly natural gas storage draws.

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