It’s necessary to keep up with the futures markets when we want to earn from them. Whenever you care, just check out the market reviews for help. To start, let’s stop by to check the energies market this week with
The Energies Pit Review
By PitGuru Daniel Cronin
Crude Oil was mixed last week as the August flatprice rallied above $78.00 at one point after the EIA reported Oil inventories dipped by 5 million barrels but fell off to $76 as the market sold off hard Friday. There are some things to like about the energy market here though as for one, the Euro/USD has rallied considerably to over $1.30 at the end of the week as shorts get squeezed out in this market. A rallying Euro and falling USD usually spell higher prices for Crude, and that is what is happening here. Another factor is the strength in the WTI spreads as crude inventory levels come down from their highs with Aug/Sep traded -38 and Sep/Oct traded -41. The three month “roll” which is Aug/Nov traded closer to the -1.30 level as it inched higher to -1.00. The third factor is the rally in the arbs (Brent vs. WTI) as the Sep arb broke through to new highs above +1.10. All of these factors point to a higher crude price so for now I would be a buyer on the dips with great support in the August contract at $75.30 and $74.40. I do see a top however at $80 and do not expect prices to raise above this level just yet.
Natural Gas had a very nice bounce after falling below the support of $4.40 to $4.25 only to trade higher at the end of the week to $4.65 as inventory numbers surprised traders. For now this range still looks to be intact with a high of $4.85 and a new low of $4.25. The only thing I may worry about is that this market has made a new low, not a new high.
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