Energy Market Recap - 1/4/2017

January 4, 2017 9:35AM CST

February Crude Oil closed up 0.82 at 53.15. This was 1.00 up from the low and 0.20 off the high.

February Heating Oil closed up 1.11 at 168.78. This was 2.28 up from the low and 1.08 off the high.

February RBOB Gasoline finished up 1.91 at 164.09, 0.71 off the high and 2.24 up from the low.

February Natural Gas finished down 0.08 at 3.25, 0.11 off the high and 0.01 up from the low.

While the crude oil market spent most of Wednesday's trade in the lower quarter of the prior session's range, it should have drafted support from a weaker dollar and a risk on vibe flowing from equities. In a positive technical note, the February crude oil contract was able to respect the prior sessions low and at times prices were trading a $1.10 per barrel above the session's low. The bull camp was probably assisted by news that Chinese January through November crude oil imports rose by 14% over the prior year. With Chinese crude oil production also declining by 9% in the month of November it was not surprising to see crude oil come away with a positive close in the second trading session of the year. As suggested in prior coverage this week, the trade expects US crude oil inventories to decline and that could help solidify support above the Wednesday lows. Countervailing the mostly positive news flow today were expectations of a build in gasoline and diesel stocks. The natural gas market failed to derive support from Russian suggestions of a possible tight supply scenario unfolding in the EU.

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