Energy Futures Update

Oil markets were heavily sold off yesterday and finally closed lower as milder weather in the U.S was forecasted especially for the North Eastern high consuming region.

Geopolitical the negotiations between North Korea and US/Japan seems to be fruitful where North Korea will commit closing down nuclear facilities in exchange for oil.

If this will happen and the agreement honored by the Koreans, a major tension factor in the region will be gone, and added further pressure on the oil price.

Looking at March Crude Oil on NYMEX tested resent supports arr $57,35/40/bbl area and finally closed at $57,81 or $1,87 lower from the opening. Opening today didn't offer much as market will await tomorrows DOE inventory data which is expected to show a build and hence bearish for oil prices.

A break of the current support would bring March contracts back to the $56,60/bbl trend line established mid Jan when the contract lows at $51,03 was traded