Mound weekend review : Energies
Posted: Mon Sep 20, 2010 2:17 am
Crude oil’s recent choppiness goes contrary to recent gains in commodities as well as the stock market. In particular there is a clear divergence between copper and oil prices, which offers a glimpse into the China component. This suggests that some premium is being taken out of the market from a lack of Gulf hurricanes and overall stable inventory levels. A strong punch in the gut to commodity prices will likely be all she wrote for the big 3 in the energy sector and a move to the low $60 range in crude oil is expected. Natural gas remains divergent and the recent bump off channel support on the Oct. contract may be the beginning of a bull run.
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