ENERGY PRICES WERE WEAK LAST WEEK… liquids markets in London and New York sank deeper into the 50/62% retracements and natural gas in New York stalled again. Of note, the heating oil market in New York actually closed below its respective area of support.
Less bad news… more bad action: Oil markets fell off of the proverbial cliff last week. Now, bulls are holding on for dear life. It couldn’t happen to a nicer lot.
On Friday spot crude oil in New York closed below $60 to finish a week for the first time since May 15th, heating oil closed with a $1.5-handle for the first time since May 22nd and gasoline with a $1.6-handle since May 15th. Over in London spot crude oil dipped below $60, but bulls managed a 60.52 close. Nevertheless, that was the lowest close since May 15th. Meantime, natural gas bulls in New York were once again dead-on-arrival last week.
So now the question holds, was last week’s downdraft the beginning of the end to the rally? To answer this question analysts at The Schork Reportare looking for two tells. First and foremost we have the ongoing issue of good news (bullish headlines)…
- Extant fallout from the Iranian elections
- Stepped up civil strife in Nigeria
- U.S. dollar weakness
- Passage of H.R. 2454
- Renewed tension between Russia and Georgia.