Cameron Hanover – Daily Energy Hedger – December 17, 2010

Oil prices were lower on Thursday as investors liquidated long positions once it became clear that the complex could not get itself in position to launch an assault on key resistance levels established last week. We had plenty of bullish factors this week, but the dollar was strong at all the wrong times and that managed to prevent oil prices from ever building a head of steam moving higher. Had the bulls been in the proper frame of mind, they would have revisited this week’s DOE figures, which were clearly bullish for crude oil. The fact that they did not tells us something about this market’s ability to move higher right now. And the on-again-off-again strength in the US dollar is a big part of that.

Daily Energy Hedger