Energy Complex Summary - October 23, 2009
Energy Complex Summary Presented By:
Broad Energy Market Summary: The energy markets were boosted by the lows in dollar as traders looked for ways to hedge against inflation. We did some selling come into the complex late in the week.
Crude Oil (DEC) For week: Open 79.12 Close 80.20
Crude was able to extend gains this week, closing above 81 (on Wednesday) for the first time all year. Currently, we are trading at the highest prices of 2009. We saw about a $4 pop on Wednesday after the EIA report. With the dollar at 14 months lows, crude has been able to find buyers hedging inflation fears. We are still at above average stockpiles for crude. We are starting to hear talk that current and higher prices will have a negative effect on the US recovery. Conversely, the break out of 5 month consolidation between 65-75, bodes well for higher prices.
Heating Oil (NOV) For week: Open 204.24 Close 206.95
Much like crude, heating oil also extended gains and printed contract highs of 212 on Wednesday. Prices have seen over a 20% gain since the lows of September 25. A surprise decline in supplies for distillates brought in buyers. Heating oil had over a ten cent range on Wednesday. Heating oil has also been helped by the colder than average weather in the Northeast. Heating oil is at its highest price in 2009 and at 11 month highs.
RBOB (NOV) For week: Open 198.04 Close 204.30
Like crude and heating oil, RBOB futures extended the gains from last week and closed near its highest prices of 2009. Looking at a longer term charts, RBOB should run into some resistance at 2.10, which was reached by in June and a couple times in August. We are currently trading at contract highs.
Natural Gas (NOV) For week: Open 477 Close 479.95
Natural gas was higher on Monday and Tuesday but sold off in the later part of week. Natural gas futures are over a dollar higher from the lows in early September. Inventories are still at record levels for the fourth week in a row. Expectations for colder weather and a weakening dollar has brought in buyers. Natural gas is up over 10% YTD.
______________________________
At Trendphonics, we strive to add value to our clients' accounts by offering charts, news, real time quotes, Market Profile and access to a full service broker for less than $10 a roundturn.
If you would like more info, email me at hking@trendphonicfutures.com
Opinions expressed are subject to change without notice. This report should not be construed as a request to engage in any transaction involving the purchase or sale of a futures contract and/or commodity option thereon. The risk of loss in trading futures contracts or commodity options can be substantial, and investors should carefully consider the inherent risks of such an investment in light of their financial condition.
