Market Watch – EnergiesPosted 11/06/2017 2:57PM CT |
Energies rallied Sunday and Monday with the news of the tension in Saudi Arabia. According to Investing.com, Oil prices jumped to their highest levels since July 2015. December Natural Gas gapped from a close of 2994 to an open at 3085 on November 5. Today, November 6, we have so far seen a high of 3143. We anticipate some minor corrections and a long term trend reversal. Nat Gas has been bearish since mid-May, however if there is a break through the resistance level of 3198 it may continue to climb higher and form a bullish posture. December Crude Oil, Dec RBOB, and Dec Heating Oil have already been in an uptrend and have not shown any signs of reversal. The volatility in these energies appears to be the result of the Crown Prince of Saudi Arabia initiating a methodical approach to eliminating corruption and establishing a new era of Foreign Policy and Diplomacy by Saudi Arabia in the Middle East. It appears that the Saudi Crown Prince intends to implement a more progressive Saudi Arabian regime in which corruption and reliance excessively on its energy resources are no longer tolerated. Analysts anticipate that the intent of this new movement is to diversify the economy of Saudi Arabia and to move away from a heavy reliance on oil production. What this may lead to is unrest and unpredictability in the Middle East, with increased tensions between Saudi Arabia and their arch-rivals Iran, and could cause lots of volatility in the energy sector products in the months to come.