The Energies Review
For the week of June 20th, 2011
The energy markets have broken significant lows last week and I think they are looking to head lower this upcoming week as the USD strengthens and the S&P falls once again. Crude oil fell below the triple bottom of $95 and is now at $92 in the Aug contract trying to head lower as major players got stopped out of the market below this $95 level. WTI spreads after the first 6 months have really gone down with Dec11/Dec12 now as low as -250. The Arb markets are coming back in line as Aug Arb trades down to -20 again after rallying to -17 last week. I will look for Crude to test the $90 mark, and I believe this could be done very soon in the week. Natural Gas lower after getting above $4.90 the last few weeks as this market is now $4.30 after a big supply number. I will look for Natty to trend lower to $4.10.
*chart courtesy Gecko Software’s Track n’ Trade Pro
Past performance is not necessarily indicative of future results.