Energy Review for The Week of February 7th, 2011

[jimfutu11]

According to Pitruru Daniel Cronin's analysis, traders needed to fade the rally in the flatprice and spreads last week as there was a big premium put into both flatprice and spreads with the geopolitical tension in Egypt being lowered as Mubarak said he will not confirm run for office. H/J traded up to -200 where it met huge selling pressure to put it down where it is now at -290. March wti traded above $92 only to get slammed down to $88 where there is huge support. This week our expert looks at opportunities to buy on the dip as support in flatprice is at $87 to $88 and will move to over $90 as the mess in Egypt is still not over. Wti spreads continue to get beat down and he looks for opportunities to be short these heading into next week. The roll starts this week and Daniel believes spreads should continue to get weaker.