Range Bound

Recently energy markets have traded in a fairly narrow band looking for a reason to break out or break down. Market participants appear to be confused by numerous cross currents and as a consequence are unwilling to place large bets in either direction. Based on the current conditions, we expect the markets to continue this pattern for the remainder of this year and into the first quarter of the next. Toward the end of the first quarter and into the second of next year, we expect to see this pattern to finally break.