Energies - Oct 12,2009
Sunday, October 11, 2009
by PitGuru.com Authors of PitGuru.com
|
|
The Energies Pit Review
For the week of October 12th, 2009
By PitGuru Daniel Cronin
Great week for the energy sector as the USD fell, equities rose, and inventories fell in crude all leading to higher prices on the New York Mercantile Exchange. Crude oil rose 2.8 % to close at $71.77, its highest close in more than 2 weeks as inventories drew more than 1 million barrels the Dept of Energy reported. Gasoline only rallied 1.6% to $1.7680 as higher inventories kept somewhat of a lid on this sluggish market. Heating Oil, the best performer, gained 3.7% to $1.8528 as the nation is fast approaching the cold weather in the North East. Natural Gas had a very modest week with prices only higher by .7% to a shade under $4.74. This market took a breather after two consecutive weeks of +15% in the oversold market.
This is likely a huge week for the markets as it gets very important third quarter earnings from JPMorgan Chase & Co., Goldman Sachs Group Inc., Citigroup Inc., and Bank of America Corp. along with Google Inc., Southwest Airlines Co., Intel Corp., IBM Corp., General Electric Co., and Johnson & Johnson. A more optimistic crude demand forecast by the International Energy Agency on Friday helped boost trader confidence. The Paris-based IEA, which advises oil-consuming countries, said demand may reach 86.1 million barrels a day in 2010, up 1.7 percent from this year. Crude oil is already at the most recent resistance of $72.60 and if it gets solid earnings from the aforementioned companies I believe it can go and test the triple top of $75.
What could limit any further pricing gains in the Oil market is rising inventories, not only from Crude, but from the Products as well. U.S. stockpiles of distillate fuel, including heating oil and diesel, have climbed to their highest since January 1983, according to Energy Department data. Gasoline inventories jumped by 2.94 million barrels to 214.4 million as refiners boosted output, the department said Oct. 7. The overstocked inventories can put a damper on crudes run so look out for another important inventory report coming out this week on Wednesday at the NYMEX.
***chart courtesy Gecko Software’s Track n’ Trade Pro
Past performance is not necessarily indicative of future results.
Recent articles from this author
- Financials - Mar 15,2010 - Sunday, March 14, 2010
- Energies - Mar 15,2010 - Sunday, March 14, 2010
- Metals - Mar 15,2010 - Sunday, March 14, 2010
- Softs - Mar 15,2010 - Sunday, March 14, 2010
- Grains - Mar 08,2010 - Sunday, March 07, 2010
About the author
Daniel Cronin - PitGuru.com's Energies & Metals Guru Daniel Cronin has spent years on the floor of the Nymex as part of one of the largest energy floor brokerages in the business. His extensive experience stems from not only his Pit background but also through intense studying and implementation of complex technical analysis and market trading techniques via the mentorship of the now retired Ralph Acampora. Mr. Cronin brings subscribers a rare combination of book smarts and real world trading experience in one of the most volatile market sectors in the futures industry. Matthew Pierce - PitGuru.com's Grains Guru Mr. Pierce is a unique acquisition for Futures Press Inc. in that he has an unmatched level of real hands-on experience within the industry in addition to his floor trading expertise and top notch education at the University of Illinois College of Agriculture. Matthew has literally cultivated the perfect professional career as a grain expert by working with the industry's most recognizable companies such as Cargill, LaSalle Group, Conagra, Walsh Trading Inc. and many more. In addition to trading on the floor of the Chicago Board of Trade, Mr. Pierce writes what many in the business believe to be the best kept secret amongst trading reports available in the industry. Jurgens H. Bauer - PitGuru.com's Softs Guru Jurgens owns and operates his own order execution firm on the ICE trading floor. He has been a member since 1987. His firm, Jurgens Bauer and Associates, specializes in executing option orders for a wide array of customers and a variety of industry participants, including individual speculators, funds and members of the trade. While Jurgens has been an active member of the trading community he has also spent time since 2000 working at raising awareness of environmental commodities, educating industry professionals on emissions trading, brokering transactions between private counter parties and developing SO2 and NOx contracts for the NYMEX. Frank LaMantia - PitGuru.com's Financial Guru Soon to be Dr. LaMantia, Frank is not only one of the most educated traders on Wall Street, but also maintains an industry resume of substance and depth. Frank has worked extensively on an Institutional preferred stock syndicate desk, as a government bond specialist, and as a financial advisor all the while achieving multiple licenses in the finance field. With an extensive and impressive client list (including Citibank, Bear Stearns, Lehman Brothers, AG Edwards, Mesirow, UBS, and numerous Hedge Funds), Mr. LaMantia brings his one-of-a-kind background to his current occupation of full time trader.
|
