Energy Futures Update

Yesterday's move upwards in WTI Crude was a real show of strength in the energy markets.

Even faced with bearish inventory data, the market shrugged off any downward sentiment and moved into new highs.

Having extended gains in excess of $4.00 this week, we see Crude Oil market with some limited upside, as prices move into an overbought area.

Much of the focus was on the normal winter stock levels and temperatures from this week, however, there is a real threat of a record cold front moving into the US eastern seaboard for next week.

Most of the upward momentum was driven by looming weather conditions.

The inventory data still indicates that levels are remaining relatively high. The latest demand indications show an upward trend, whilst US gasoline demand leads the way and distillates and oil products' demand have both surged in the latest week.

Yesterday's low in WTI Crude was a perfect fit to technical support at 55.75. From there is was one way traffic, really. What with the surge in prices this week, we see only a limited upside to the current momentum, with 58.50 remaining the cap to the current positive momentum. With 58.50 being reached, we see profit taking moving into the weekend.