The summer driving season is fast approaching! Will it be a boom or a bust? The economic recovery may come down to miles per gallon as the market is trying to gage where we are at in this economic recovery. Today oil is mounting a comeback early this morning and the big question is why? Is the market expecting good things to happen? Oil traders creep back into oil after Friday’s pre-contract expiration sell off that kept buyers from rolling over until today. Oil seems to stay resilient in spite of ample supply as it continues to focus on the prospects of economic recovery and he rising risk of commodity price inflation.
Yet with ample supplies of oil this market is still dependant on the fortunes of the stocks and the dollar and they may be dependent on a rebound in the consumer. A damper was put on the economic optimism last week when we saw weak retail sales data. The poor mood of the market was apparent as energies gave up ground fretting about the economic outlook. What did not help matters is that the market is facing the June contract expiration and many bulls choose to just cover and not rollover into the weekend. This week we will see if the bulls come back in or will they stay in hiding until we see demand improve and start eating into supply.
Today oil is finding strength after another weekend filled with violence in Nigeria, women elected in Kuwait and a landslide election for Soni Gandhi’s party in India elections. The other key for this market may be based upon how many Americans travel on this upcoming Memorial Day weekend.
This will be key as the economy needs to see a rebound in consumer spending. Good Weather will be a plus as well as the fact that gas prices are about $1.42 cheaper than they were a year ago.The Goddess of Gasoline, Trilby Lundbweg, came out with her last look at gasoline prices ahead of the Memorial Day weekend. As luck would have it Chicago one of the highest prices in the nation. You got to love those boutique blends of gasoline. According to the survey, gas prices in the U.S. are holding steady. Lundberg says that the average price of regular grade gasoline was $2.05 a gallon on Friday, when the two-week survey was completed. That's less than a penny increase from April 10. But the price is $1.42 below levels from the same time last year. The lowest price for gasoline in the U.S. was in Phoenix at $1.80 a gallon. The highest was in Anchorage, Alaska, at $2.45. The lowest price in California was $2.26 a gallon in Bakersfield and the highest was $2.33 in San Francisco. The average price in Los Angeles was $2.31.
We still feel oil is headed higher and look for breaks to but on bullish strategies! Call me for the latest! Fill up your gas tank and sign up for the Phil Flynn Energy Blast! See me every day on the Fox Business Network! Also call for intraday trade adjustments and option recommendations. Call me at 800-935-6487 or email me at pflynn@alaron.com to open your account!
We're long June crude oil from apprx 5700 - raise stop to 5200 if not stopped roll to July crude MOC.
We're long June heating oil from apprx 14700 - stop 13900.
Buy June RBOB at 15000 - stop 14200.
Buy June natural gas at 390 - stop 330.
