From a technical perspective all of the commodities in the oil complex hit a top several days ago and have been drifting lower since peaking after a long run to the upside that began in early February.
Record cold and record demand are playing havoc in certain spot markets, driving markets crazy. Natural gas prices are rising and big swings in heating oil futures as the market tries to balance strong demand with supply.
Dan Dicker, energy trader, oil analyst, television and web commentator, author and general provocateur doesn’t mince words, especially about the new players brought in through electronic trading of the markets.
The energy markets are really moving today, with AUG13 crude oil now trading up $1.31 to $107.80. We believe this market could quickly approach $110. Heating oil is another related market that has been on fire recently.
While manufacturing reported weakness caused a drop in oil, heating oil led a product comeback. Yet it was natural gas that quietly closed above $4.00 that was perhaps the most interesting move of the day.