The Energy Report

Showdown on the shelf!

Tue, Jul 15 2008, 14:44 GMT
by Phil Flynn

Alaron


Show down on the shelf! The Outer Continental shelf that is! There may be coffee coming out of Brazil but there isn’t quite as much oil. Oil is still reeling from bank worries and the strength of the US dollar but has taken a time out to now worry about other issues.

Oil fell early in the session on hopes that the fall out from Fannie and Freddie situation would be contained and the fact that no one actually attacked Iran over the weekend and that Iran’s photo shop seemed to not be working. Yet the day would not be that easy in a session where emotions and the economy whipsawed back and forth. Oil seemed lost as to what direction to follow and was once again torn between oil being used as a hedge against systemic risk and oil as a simple supply versus demand commodity. Despite the ups and downs, oil is still perilously close to the all time high.

The first oil rally came on reports that the Brazilian labor union went on strike and closed down some of the Brazilian oil platforms. Bullish, but not bullish enough keep oil up all day.

Then came reports of other banking ills permeating the market place. Oil traders were perplexed.

Next came President Bush who in a great political move lifted the executive ban on offshore oil drilling. This is a reminder to everyone that the Democrats "no energy" Energy Policy is a dismal failure. Americans have woken up to the fact that the problem with sky high energy prices is not the oil companies fault and it is not the fault of speculators but is mainly the fault of the US Congress that has done everything it could to hamper and slow US oil production. The Democrats anti-energy policy is now coming home to roost. They have blocked energy at every step, raised tax on oil companies and have discouraged production. The Democrats celebrated when they blocked ANWAR which I predicted at the time would come back and bite them in their ANWAR. Now they feed us this story on how drilling is not going to solve the problem and other rubbish. The Dems say drilling for oil is dangerous and appear oblivious to the fact that many Americans are suffering because of their out-dated and harmful left wing ideology. The Democrats better come up with a solution as they are again on the wrong side of history and the American people are starting to get more than annoyed that Congress is indeed to blame. The Dems, instead of pointing fingers, should fix the problem. Of course being in Congress means never having to say you are sorry!

What is really sorry is that many of you have not demanded the Fox Business Network! Shame on you! Call your cable operator today! What is even more shameful is that you haven’t opened up your account with me!

Buy August crude at 14300 - stop 13900.

Sell August RBOB at 37500 - stop 37800.

Buy August heating oil at 39900 - stop 39700.

Buy August natural gas at 1140 - stop 1120.

Have a GREAT day!

Published on  Tue, Jul 15 2008, 14:46 GMT

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