The energy complex this week had a little bit of something for everybody this week. Bullish investors were rewarded with a surge in crude oil prices. Bearish investors celebrated another steep decline in natural gas. Neutral gasoline investors were satisfied with a sideways market.
The week started with low expectations due to the U.S. Thanksgiving holiday. This holiday-shortened week has historically been highlighted by extremely low volume and volatility.
Natural gas futures started the ball rolling on the downside with four consecutive lower closes. The market looked promising early in the month but a series of disappointing weather forecasts and storage reports drove prices sharply lower.
Crude oil prices started the week flat with many traders trying to balance the bullish news about a production cut extension next week by OPEC, and the bearish news about low demand and rising U.S. production.
However, bullish traders got a break when U.S. WTI crude oil surged to a two-year high as North American markets tightened on the partial closure of the Keystone pipeline connecting Canadian oilfields with the United States.
January West Texas Intermediate Crude Oil Futures
(Click to enlarge)
The main trend is up according to the weekly swing chart. The uptrend was reaffirmed this week when buyers took out the previous top at $58.21. The main bottom remained at $46.95. The primary upside target is $63.95.
A break back under…