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Crude Oil Spikes Higher


While the crude oil market spiked sharply higher overnight and approached the $61.00 level, it failed to hold those gains in a potential sign of a short-term overbought condition. However, in addition to a very impressive “risk on” global market vibe, the crude oil market is reportedly drafting support from extreme cold in the US which has boosted heating demand.

As indicated already, product prices are surging more than crude oil prices this morning due to the closure of the largest US oil refinery. The largest US refinery was shut down (600,000 barrel per day Port Arthur Texas refinery) because of the extreme cold.


Obviously, the extreme cold in the US has caused second thoughts in the marketplace which has not expected much in the way of tightening of US supply before the end of winter. In fact, demand in some areas has overwhelmed production capacity and throughput in natural gas electric generation is now running very strong.


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