Over the weekend the market rallied after last week’s rate hikes, but adjustments in weather forecasts for January mostly dulled the gains on our overall portfolio. GPP and PEGI were both affected – down $0.30 and $0.03 respectively throughout the day.
January is now predicted to run an average of 4-7 degrees above the historical average. Previous expectations had January at or below the historical average, at least early in the month. This will dull the bull oil market a bit, and it should have a stronger impact on Natural Gas prices than Crude Oil.
For the next few days REXX (which we’ve been looking at since Friday) should trend down a bit, which might make it a successful buy if they lose a cent or two more – this is still a bullish oil market, which will definitely help this small producer over the next few months.