Flip Flop Friday

By: Mike Dombroski / January 6, 2017

As we near the end of the week, apparently oil traders can’t make up their minds about how to position themselves for the weekend. The WTI February contract was trading up $0.56 early this morning at $54.32/bbl on the heels of the story that Saudi Arabia has indeed cut January production by 486,000 barrels per day. However, it sold off after 10 a.m. to a low of $53.32. Then, it recovered and is currently trading up $0.35 at $54.11.

This volatility is something to expect this month with reports of OPEC’s production cut performance and also the inauguration of President-elect Donald Trump. I know what you’re asking yourself – why would the inauguration of our president affect the oil market? Conventional wisdom would indicate it has no correlation, however, many market analysts are speculating that the stock market could see a correction of some sort from the “Trump rally” we’ve seen. If the stock market would sell off after his inauguration, oil may sell off as well as we struggle to exceed $55/bbl.

In other news today, the U.S. added 156,000 nonfarm jobs last month vs. the 178,000 estimate. The unemployment rate rose 0.1 point to 4.7%. Albeit the “real” unemployment number, referred to as the U-6 rate, fell 0.1 point to 9.2% - this includes those who have given up looking for employment.

 

 

1-5-17 market.jpg


Mike Dombroski

Written by

Mike Dombroski


Guttman Energy Daily Market Update Disclaimer – The information contained in this market update is derived from sources believed to be reliable; however this update could include technical inaccuracies or typographical errors and Guttman Energy does not guarantee the accuracy, completeness or reliability of this update. FURTHERMORE, THIS UPDATE IS PROVIDED "AS IS," WHERE IS, WITH ALL FAULTS AND WITHOUT ANY WARRANTY OR CONDITION OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY. GUTTMAN ENERGY ALSO SPECIFICALLY DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES. YOU USE THIS UPDATE AT YOUR SOLE RISK. This update and any view or comment expressed herein are provided for informational purposes only and should not be interpreted in any way as recommendation or inducement to buy or sell products, commodity futures or options contracts.


Comments

Subscribe to our blog

Price Feed

Stay up-to-date on current fuel prices and market trends with our NYMEX price feed (15 minute delay to the live market).

© 2018 Market data provided and hosted by Barchart Market Data Solutions. Fundamental company data provided by Morningstar and Zacks Investment Research. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer.

Categories

Contact Us