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According to Pitguru Daniel Cronin's report, OPEC has kept inventories levels unchanged this weekend as prices stayed relatively unchanged last week with a range of $90.70 to $87.50 a barrel on the NYMEX. “OPEC has maintained a production target of 24.845 million barrels a day since December 2008, the longest period that quotas have stayed unchanged since they were first used in 1982. The 11 members with quotas pumped 26.7 million barrels a day last month, 1.9 million more than targeted.” The news of the unchanged supply increase will lead to higher future prices this week as the only change members were considering was to tick up inventories as the price of Oil has gained nicely for the Saudis. Equities have been making new yearly highs with the DOW now over 11,400 and climbing. This, with the OPEC news, will likely send prices over $90 this week as the strength in this market will continue. WTI spreads have stayed relatively steady after the dip last week as f/g trades -54 and g/ trades -48. These have actually been on a bit of a decline coming down from -35 but still hanging around the -50 area in the front. Dec11/Dec12 found support at +52 and has bounced back up to +81. January Arb still very weak as brent continues to be the leader with Jan wti vs brent trading right at the support of -3.00. I might look to be a buyer of some OTM calls or try and get in on flatprice below $88 because $90 will be coming up again very soon in my opinion.

Natural gas making the charge up again after last week’s decline on weakening inventory levels as this market closed above $4.40. Natty was having a great ride to above $4.60 levels but plummeted -20 cents on a bad inventory number on Thursday. This market quickly got its legs underneath it and now looks to be headed back up to $4.50.

You have just reviewed the energy review for this week, note down the necessary information for your investment!