We are living and trading in a new week. It needs to have new reviews for us to keep up with the market. As ever, be back energy market to learn the notable points that [B]Pitguru Daniel Cronin[/B] has analyzed for us!
[B]The Energies Review[/B]
For the week of April 18th, 2011
The energy markets saw a dead cat bounce last week as prices plummeted to the support of $105.50 only to bounce right back up $5 to close out the week in June at $110.45. I believe that was a great chance to sell on the rally as prices will probably gravitate back towards the $105 mark as supplies in Cushing are just too real for the market to try and ignore anymore. Gasoline has hit the $4.00 level as travelers start to panic and groan about the high price and this will try and ease the pain somewhat as consumers can’t afford to pay for $4.00 gasoline. WTI spreads have rallied very well the last week and I believe look to go to the downside as the back of the curve appears way too strong with Z11/Z12 over +350. I think this needs to get liquidated back to 250 and I can see this happening this week. Stay on the lookout for any news out of the Middle East. Once the tension and fighting ease this premium will likely go away and oil will fall sharply.