The U.S. stock market has run up magnificently in the last six months. The U.S. economy has begun to recover, but its performance has fallen short of expectations.

The nation’s refining industry is taking a nosedive today thanks to a report from Valero. The markets are reacting like all refiners are going down in flames. It is not the case by any means. Take advantage of the mistake.

With oil finally trading back above the $50-a-barrel level, it’s time to recognize that crude prices are probably not going to remain low for very long, and may end up fluctuating in the $50-$80 range – regardless of what happens to the prices of other commodities.

The Canadian Markets continued to fall ever so modestly during Tuesday’s session as the price of bullion dropped below the $900 per ounce mark. For the tale of the tape, the TSX Exchange fell 0.50%, while the TSX Gold Index lost 2.4% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, gave back 0.98% with the decliners beating out the advancers by a 416 to 336 margin on volume of 126 million shares traded.

Despite another increase in the unemployment numbers in the United States, the Canadian Markets continued to rally during Thursday’s session. For the tale of the tape, the TSX Exchange climbed 1.40%, while the TSX Gold Index tacked on 2.4% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, added 0.90% with the advancers beating out the decliners by a 402 to 312 margin on volume of 147 million shares traded.

Suncor Energy Inc. (SU) said it will buy rival Petro-Canada (PCZ) for $14.9 billion (C$18.43 billion) in a deal that will create Canadia’s largest energy company, with a refining capacity of 433,000 barrels per day.

While everyone is focused on what Obama will do with green energy, it is pointed out that Canada is the largest, nearest, most reliable, and friendliest source of oil the U.S. has. Obama would be smart to enhance that relationship even further.

Commodities will rebound in the New Year, says Martin Hutchinson. Supply and demand fundamentals remain bullish for natural resources. Even more importantly, massive increases in the money supply will create inflation, against which hard assets are an important hedge. Martin gives five ways to play this trend in 2009.

Crude oil prices slipped below $60 a barrel yesterday, taking the black goo to a 20-month low. But that doesn’t change the fundamentals. Oil production is levelling out, and will soon begin to fall. Andrew Gordon expects crude to soar back toward $200 after a short pause. And Big Oil companies that are still investing in new projects will shine.