Energy Futures Update

Yesterday Crude closed down -1.23 at 63.55/barrel as above average temperatures erased last weeks gain.

OPEC's 14th December meeting resulted in a further production cut by 500K barrels/day which took crude testing 64.15 high (Feb07 contract).

Weekly inventory data will be the number to watch this week.

Technically supported at 62.25, and with a further decline in inventories expected this week ( 4 consecutive week) - the downside seems limited.

Expect Feb07 Crude to hold 62.25 support, trading back towards the upper trendline resistance at 64.00.