Crude Rises for Fourth Time in 5 Days

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Dec. 24 (Bloomberg) -- On today's "Futures In Focus," RJO Futures Senior Commodities Broker Phillip Streible discusses the price of oil on Bloomberg Television's "In The Loop." (Source: Bloomberg)

Have seen drawdowns.

We saw a shot out of about 10 million barrels six years ago.

It is not out of the u.s., it is a demand overseas.

We have seen exports pick up quite a bit.

You are seeing inventory come out of cushing, you are seeing triple digit oil.

I wonder if how much of that is a fake out in the short term, there is -- what is the likelihood we see a bill at the beginning of next year?

I think that will be the case.

We will be passed that hurdle.

These guys are cracking that back into gasoline and heating oil.

Heat oil and gasoline prices are not accelerating as fast as crude oil.

You will see this topping action in crude oil and you will see heating oil and gas prices start to rise.

What is the bottom, how much does it have to pop for oil?

If you start seeing these builds, massive builds, 2, 3, 4 million barrels.

You will see oil prices come back down to $96, $93, and anti-dollars by quarter end.

Will you be a buyer, we have geopolitical risk in the middle east and then the gulf coast.

Once we get down to those levels, you look at further out contracts like december 2014. this plays more of the geopolitical risks and it plays the longer curve, rather than short-term supply demand fluctuation.

Go out, go out at least to the end of the year.

When you talk about natural gas, that has had a huge run, 34% this year.

When do we see the five dollars?

When i do not have to wear five jackets coming into work.

We saw a 285 billion cubic feet drawdown a couple weeks ago.

We are expecting high drawdowns until at least january 6. if we start to see some warmer temperatures, natural gas prices will peak around that five dollar level and we will come off from there.

It should liquidate pretty fast, it is a hefty long position.

It was like 70 degrees yesterday here.

What does that due to demand if we get up to around that five dollar level?

Could i put a cap in it.

You will not see demand obstruction, more than half of the households in the u.s. use natural gas.

You will see them coming out more natural gas and trying to fulfill those needs.

Or they will start looking at alternatives like propane or heating oil.

Then you will start to see prices come down.

I don't think natural gas does any business around the five dollar mark, it should be 350.

This text has been automatically generated. It may not be 100% accurate.


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