Friday, November 18, 2011
Crude Ends Below $98 As Rally Fades
While the sale and planned reversal of the Seaway Pipeline should ameliorate a U.S. supply glut beginning sometime next year, in the short term the effect on the physical crude markets will be minimal. For that reason, the spike in oil futures appeared to be an overreaction for many market participants, who opted to lock in returns.
"It's reached levels where you should be taking profits," said Brian LaRose, an energy analyst at brokerage United-ICAP. "There is the risk here in the short term for a substantial correction." Light, sweet crude for December delivery settled $1.41, or 1.4%, lower at $97.41 a barrel on the New York Mercantile Exchange, after falling as low as $96.64 in earlier trading.....Read the entire Rigzone article.