Energies Commentary for Sep 7th

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johntrade
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Joined: Sep 7 2010
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Energies Commentary for Sep 7th

Hi all,

The energy market is lower this morning as the holiday weekend is over and investors get back to this market. Sellers flooded the labor day session with crude oil down by some 60 cents to trade at $74.00. Non farm payrolls came in on Friday and even though the report lifted the equity markets, the energies took a dive as crude went from $75.50 down to $73.00 in a little over an hour on the NYMEX. Gasoline and heating oil also took a beating with the sell off. WTI spreads have sold off significantly as well with the Oct/Nov spread -30 to -167 at one point and the Nov/Dec down -20 to -149. These spreads have had a wild ride the last few weeks after finally coming off from their highs in the mid -50s. The market is finally seeing some real action in the front spreads and this looks to be here for a while as these spreads get to their yearly lows. Look for a bit of a rebound to start the day in the spreads and flat price as well but I do see $72 coming soon to this market.

Natural gas to $3.82 this morning and ticked up to $3.90 at one point Friday. This market still needs to consolidate a bit more but now looks a bit healthier as the selling briefly halted. $3.65 looks to be the base for now.

 

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