The Energies Review for This Week - 14th, Feb, 2011

[jimfutu11]

New week is coming. It's time for us to be back to have a look at energies market with Pitguru Daniel Cronin to check for the news. Now, let's see what's going on and plan your biz!

The Energies Review
For the week of February 14th, 2011

Crude Oil had a whipsaw like week that saw the flatprice move between $85 and $88.50 as Mubarak was playing musical chairs with his presidency, sparking rallies and sell offs alike. March crude, which only has a few days left to trade, is below $85.50 but most everything else in the space is up as the contango steepens in the WTI spreads. H/J crude is now below -30 and looks to continue to slide here as some have suggested a test below -400 by the end of expiry. The April/May is also very weak as this is below -340 and I would like the play to sell this as I believe this spread will reach new lows. I think the back end of the curve from June out is a buy this week as the contango appears too powerful in the front to try and get long there. Look for a hold of $84.50 in March as the week closes out.

Natural Gas has had a bad losing streak as March Natty is now below $4.00 with the oversupply this market has. I believe that prices are in an area that appears oversold and I think it could be picked up just on technical support right now. Look for long opportunities in the April contract somewhere between $3.96 and $3.90 as Natural Gas could once again test the $4.00 mark.