jackfutu18
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The Energies Pitguru Review
For the week of Jul 12, 2010
For the week of Jul 12, 2010
By PitGuru Daniel Cronin
New week with new news in the market. Let's see! Crude Oil had a very nice bounce last week as the August flatprice rallied from $71.00 to $76.00 as the equity market rallied from 1000 to 1070 in the S&P. Inventory reports were a draw in the oil space and in the Cushing market and thus led to the charge in the WTI spreads. The front spreads are now in the -40's as this is somewhat of a bullish sign long-term. This week, however, I believe you will see some profit taking and the market trending back toward the $74 level but I would be a buyer there as that is a nice valuation point for the crude market.
China’s net crude purchases climbed to 22.14 million metric tons in June, beating the previous record of 20.98 million tons in April, according to preliminary data from the General Administration of Customs on July 10. Imports surged 30 percent in the first half of this year on higher demand and lower costs. These numbers do signify that demand is coming back into the market, especially Chinese demand, so these numbers should not go unnoticed.
Natural Gas slipped to $4.40 and is a great buying opportunity as it is on the low end of the range trade. Inventory reports did not sit well with traders as the market came off but this price level offers a great value buy in the Natty Gas.
