The Energies Review
For the week of December 5, 2011
By Daniel Cronin
Another week, another new recent high in the WTI space as crude rallied to $101.50 to close out the week on increased concern over Iran's crude supplies. The market has really been on a huge wave to the upside. This looks likely to continue as the equity markets have once again found their footing following the downturn ahead of the Thanksgiving holiday. WTI spreads in the back of the curve remain strong in backwardation and the Jan arb has recently moved up again into the -8 dollar range. All signs point to a higher week and the next target will be $103.50.
Disclaimer: Past performance is not indicative of future results. Trading futures and options involves substantial risk of loss and is not suitable for all investors. Fundamental factors, seasonal and weather trends, daily news, and other current events may have already been factored into the markets. The use of stop loss or contingent orders may not protect profits and may not limit losses to the amount intended. Certain market conditions make it difficult or impossible to execute such orders.