The energy complex is moving lower following a strong rally performance yesterday. The dollar appears to be recovering and equities are mixed. Budget discussions in Washington are not moving forward and it’s the greatest market mover today. We have been given a lot of news for the market to decipher of the last few days. The key to this market is the Fiscal Cliff negotiations. If we go over the cliff, what will happen to global oil demand? If we don’t go over, we still face bearish fundamentals and an uneasiness as to what Washington did agree to and how does it impact our future.
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