The Organization of Petroleum Exporting Countries won’t need to raise oil production this year as its output of natural gas liquids increases, the International Energy Agency’s deputy executive director said. >>READ STORY
After peaking just around resistance last week of $84, crude oil has pulled back and looks like it may gravitate towards its 100-ema @ $75. The build in crude and the worry about a continued economic recovery has stemmed this rally, that I was forecasting in oil. Today's news from OPEC has added more cold water to the rally. My premise had been that oil was and has been following a 4 month lag to the movement in gold prices....that remains to be seen. If the winter weather goes back into a deep freeze and as earnings reports come out this week could rerignite the expected global recovery we could see oil prices rebound. On Thursday, China is expected to report a 20 percent year-over-year jump in industrial output for December, which would be the fastest pace in close to four years. >> READ STORY
The dollar still appears to be putting in a bullish flag formation. Testing it's 40-ema which had been resistance on the way down, now appears to be support...watch this.
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