The Energy Report forWednesday, August 12, 2009
What, me worry? Never! Oil Prices close below $70 and now the price of oil seems to be headed back down. Was there ever a doubt? Ok fine!I admit it! When I predicted that oil prices had peaked for the year in early July, I admit I was sweating it.Oil prices seemed to get a new lease on life as a surge of economic optimism seemed to increase the odds that oil demand could somehow overcome a world awash in supply. Now the odds are increasing that the high for the year is still in and I can breathe a little easier. Yet yesterday it appears that oil had asell off in a surge of what you can call pre-fed fodder.
Yesterday oil was disappointed with on economic news out of China which seemed to suggest that China's recent oil demand growth has been more government spending than economic growth inspired. In fact today US oil traders may find just how dependant the price of oil ison our Federal Reserve and fed policy. Will the Fed send the message that the days of printing money to prop up the economy is coming to an end? As I have said since the day the Fed announced its policy of quantitative easing,theywould bethemost significant factor that would drive oil prices higher. And now as it appears that the economy is seemingly getting better the Fed will now have to start laying the ground work for a reversal of those policies. Oh sure we can talk about the EIA and the API but the Fed and their statement will be the biggest factor that will drive the future of oil prices.
We're Sept crude fromapprx 7150 -stop 7390.
Stopped on short September heating oil from apprx 19700at apprx20000.
We're short September RBOB from apprx 20750 - lower stop to 20500!
Sell September natural gasat 470 - stop 480.
The Dan Flynn Corn & Ethanol Report
Get Ready !
It's the Big ThreeDay and I'm talking about Grains not the former automaker giants.
Theaverage Corn guesstimates per million acresare 12.508 and average yield 157.490 and the consensusof acres planted is 86.333.
2008-2009 ending stocks are 1.748 while 2009-2010 are coming in at 1.697.
On World Production the survey says:
Argentina Corn 2008-2009 @ 13.00 and 2009-2010 @ 15.00
South Africa Corn 2008-2009 @ 12.00and 2009-2010 @ 11.50
Brazil Corn 2008-2009 @ 49.50 and 2009-2010 @ 54.00
In last nights action the December Corn's last is 328 1/2 down 2 1/2 cents.
We await opening calls for the day session.
On the Energy Front September Crude Oil finally broke the $70 level.
We also have weekly inventory numbers due out this morning.
This could justify another leg down to lower prices.
and cheaper prices at the pump.