OPEC was nestled all snug in their beds,
While visions of high prices danced in their heads.
With Ali in his kerchief, and Hugo with his rap,
OPEC had fallen for a bear market trap.

And after tough Algeria talk, the Cartel was in tatters.
They made a record cut in production and it did not seem to matter.

After a short term rally that was gone in a flash, the January crude expiration took on the look of a crash.

To the cartel the selloff was a terrible blow, as members of the cartel desperately need all of that dough

When, what to those greedy OPEC eyes should appear,
a market focused on demand destruction, the cartel's deepest fear.

With a major sell-off in oil so lively and quick,
the realization of their futility hit them like a ton of bricks.
More rapid than eagles they will point the finger of blame,
and who will cheat first on production let us call them by name.

Will it be Iran, Kuwait, Saudi Arabia, or Nigeria? Or perhaps, Venezuela, Libya, Qatar or Algeria.

The lost control of the market and their backs to the wall, they had better, cut away, cut away, cut away all!

As winter rolls in we have plenty of supply.
When they meet with winter obstacle, no move to the sky.
So unless the economy improves, OPEC will be put to the screws
And Putin and Russia will have big problems too.

For oil to come back we will need strong demand proof,
yet with the struggling economy that proof is aloof.

The President is hoping that autos can turn things around. Yet how can this happen with no plan that is sound?

You can throw them some money but I would still buy puts,
it is like burning your money into ashes and soot.
A bundle of goodies to get the economy on track.
And Ben Bernanke looked like a peddler, just opening his pack.

How he printed the money when things got so hairy,
but the banks still won’t lend because the risk is still scary.
He will do anything to get that credit to flow. But he has to get someone to start lending the dough.

And as if the economic crisis wasn’t enough of a kick in the teeth,
then you get Bernie Madoff who is a terrible thief.
The fraud went on despite the fact his books sure seemed smelly.
As an economic foundation built on a bowl full of Jelly.

The economic crisis took on a life for of itself and the theory of decoupling has been put on the shelf.

For oil producers, high prices, it went to their heads. Yet now in the future there books will see red.

When the economy is slow cutting production won’t work and it proves that the cartel is a group full of jerks.

To the market right now they just have just stuck out their nose, yet in a struggling economy you need for demand then to grow.

Our soldiers are fighting in lands far away and we pray for them and their families each and every day. They are fighting to defend all our rights so to them and all of you, Merry Christmas and goodnight.

The Energy Report is taking off the rest of the week! Make sure you call in for trade updates! Call me at 800-935-6487 or email me at [email protected] .

We're short February crude on the triple rollover from apprx 4461 - put in stop 5100.

Buy February natural gas at 510 - stop 470.

Have a GREAT day!
Phil Flynn
Alaron Research Team
800.935.6487
[email protected]

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About the Author:
Phil Flynn is Vice President, Energy Analyst and General Market Analyst with Alaron Trading Corporation (www.alaron.com). Phil is one of the world’s leading energy market analysts, providing individual investors, professional traders and institutions with up-to-the-minute investment and risk management insight into global petroleum, gasoline and energy markets. Phil’s market commentary, fundamental and technical analysis, and long-term forecasts are sought by industry executives, investors and media worldwide.

Most recently, Phil and his energy team were one of the first to predict that global crude oil prices would exceed $30/barrel in the year 2000, a correctly-predicted market milestone which has highlighted the economic scene in the new millennium. Through hundreds of media interviews, Phil Flynn and Alaron Trading have become familiar names in living rooms and boardrooms worldwide. The world’s print, broadcast and online media have come to rely on Phil’s accurate and animated forecasts and analysis.

Media highlights include: The President of the United States, Bloomberg, ABC, CBS, NBC’s “Today Show” and “Nightly News with Tom Brokaw”, CNBC, CNN/ CNNfn, FOX’s “O’Reilly Factor”, PBS’s “The Newshour with Jim Lehrer” and “Nightly Business Report”, MSNBC’s “The News with Brian Williams”, Wall Street Journal Report, The Wall Street Journal, Business Week, Investor’s Business Daily, The New York Times, The Los Angeles Times, Chicago Tribune, Associated Press, The Toronto Globe & Mail, Houston Chronicle, Futures Magazine and National Public Radio.

Phil’s daily market analysis can be viewed at www.alaron.com, the world’s leading futures Web site. He has been featured on MarketWatch.com, ino.com and FutureSource.com.

Phil’s commitment to and experience in futures trading is documented in two books, The Mind of a Trader (Financial Times/Pitman,1997), and Trading Online (publisher, date), both by Alpesh B. Patel. Phil is a lifelong resident of Illinois. He attended Daley College in Chicago before beginning his career on the trading floor of the Chicago Mercantile Exchange

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The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. Alaron Trading Corp. its officers, directors, employees and brokers may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction