Energy – lower as global equities fall and the dollar, yen strengthens. December crude oil is trading $1.38 per barrel lower to $96.29 compared to $99.60 Friday at this time. December heating oil is higher by 1.51 cents per gallon to $3.0476 compared to $3.129 at this time Friday. December RBOB gasoline is trading higher by 2.75 cents per gallon to $2.5059 compared to $2.5357 per gallon at this time Friday.
We have a negative feel today with global equities pointing lower. Energy markets have followed equities for some time with the premise that the stronger equities indicate strong energy demand. A firmer U.S. dollar also pressures commodities lower. Although we have Thanksgiving Holiday week, global markets continue and Europe appears to be sliding lower and lower.
Seasonally, we have crude oil falling from October to January. We have a 28% historical decline for crude oil during this time. A 28% decline from 103.37 would target 74.45 levels for crude oil. Can we do it again?
