We have an interesting situation with oil and natural gas prices - which could lead to various trading possibilities for next week.

You see, in today's trading, crude futures rise to a one-week high as Nigerian violence increased the likelihood of OPEC output cuts. This pushed the benchmark contract above $63 a barrel, hitting its highest level in a week. In recent statements, it's become clear that the $60 level is a strong price floor, as Saudi's ambassador to the U.S. described $60 oil as "acceptable and eminently fair."

At the same time as oil prices are jumping, natural gas remains priced relatively low despite temperatures below the freezing mark along the Northeast. January natural gas added 2.9 cents to $7.70 per million British thermal units, but those prices still represented a loss of more than 8% for the week. In fact, yesterday's natural-gas futures closed at a 10-week low amid concerns over high inventory levels.

So you have oil once again moving up to new weekly highs at the same time that natural gas is hovering around 10-week lows. If this recent cold stretch is here to stay, then I'd think that we see an upward push in both oil and gas prices in the near term. So let's keep an eye on natural gas plays for potential upside as we close out the 2006 calendar year.

On another - warmer - topic of conversation, Adam and I have been asked to speak at the upcoming World Money Show in Orlando, February 7-10, 2007. The event is taking place at the Gaylord Palms Resort - where you can see speakers like Newt Gingrich, Harry Dent, John Dessauer, Ed Finn, and Richard Band. If you want to get in for free, use this priority code: 007760, and make sure to mention Agora.

Here's a link to the show - see you there!

http://www.worldmoneyshow.com/twms/orlando/main.asp?scode=007760