The Energy Report
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Oil Market BreakDown!
Fri, Jul 25 2008, 13:10 GMT
by Phil Flynn
Oil market breakdown! Like hey wow! It appears supply and demand still matter.
Some people watching the energy markets the last few weeks and even many of those I have spoken too are shocked that oil prices can go down. And who can blame them. Many market participants and observers have only seen energy prices go up, up, and away. For the majority of this year oil has had a sense of bullish inevitability. Yet oil has gone down. And not only go down but plunge from an all time high 0f $147.27 on July 11 to a low of $123.52 yesterday getting people to realize what goes up can indeed come down. And come down as fast as - or faster than - it went up. Why? Very simply, the laws of supply and demand are beginning to take hold.
Yet yesterday we did bounce and we bounced for a couple of reasons. As the stock market got obliterated on bad housing news traders came back to oil as a safe haven. On top of that a refinery fire gave a boost to heating oil. Reuter’s news reported that a fire blazed at the 320,000 barrel per day Curacao-based Isla refinery at a distillates unit that produces lubricants. That helps lube a comeback in distillate. Yet really we bounced because, lets’ face it, we fell too hard.
But there are more signs of rising supply. Saudi output is rising. Petrologistics reported that OPEC oil production is expected to rise by 200,000 barrels a day to a whopping 32.9 million barrels of oil a day. Saudi production will rise to 13 million barrel of oil a day. The amazing thing about that is they are already having a hard time selling what they have.
They key issue that will keep pressure on the market is the fact that without demand and more OPEC production prices are vulnerable to fall. The markets are changing fast so you need to keep up on the latest changes. Call for intraday trade updates and to open your account at 800-9356487 or email me at pflynn@alaron.com. And you can see me on the new and exciting Fox Business News when you tune in. Also sign up for your free trial of Alaronenergies! Or just call me at 800-935-6487 or email me at pflynn@alaron.com.
We're short September crude from apprx 12570 - stop 13300.
Sell September heating oil at 37500 - stop 37800.
Sell September RBOB at 30900 - stop 31500.
Sell August natural gas at 1050 - stop 1070.
Have a GREAT day!
Published on Fri, Jul 25 2008, 13:11 GMT
Archive
- OPEC Holiday Wish
Published On Mon, Dec 1 2008, 15:33 GMT - Oil Bears Give Thanks!
Published On Wed, Nov 26 2008, 18:09 GMT - Power up!
Published On Fri, Nov 21 2008, 14:20 GMT - Frosted and Flakey!
Published On Thu, Nov 20 2008, 16:24 GMT - Breakable China
Published On Wed, Nov 19 2008, 16:56 GMT
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