Prices are lower this morning for the oils on a round of profit taking after last week’s gains. Overnight news that Mexico has reopened its oil ports after being closed for three days due to bad water in the Gulf of Mexico. The dollar continues to make new all time lows.
As we have mentioned we do not expect this pattern to change in the very near future but we also continue to view the energy complex as extremely overbought (especially for crude oil) and very susceptible to a correction. The current price level is significantly ahead of any fundamental support.
Our warnings and recommendations remain the same… trade from the long side with caution employing tight, trailing stops and hedge using options strategies. Both recommendations are based on expectations of a correction before too long.
Prices are lower
| Current Expected Trading Range | Mar 10,2008 | |||
| | Monday | Change | Upper | Lower |
| | as of | From Prev. | Res. | Support |
| | 8:04 AM | | | |
| Apr WTI | $104.44 | ($0.71) | $110.00 | $99.20 |
| Apr Brent | $101.70 | ($0.68) | $104.00 | $86.50 |
| Apr HO | $2.9305 | ($0.0165) | $3.0000 | $2.7100 |
| Mar Gasoil | $962.25 | ($10.25) | $920.00 | $760.00 |
| Apr RBOB | $2.6655 | ($0.0288) | $2.7000 | $2.5200 |
| Apr NG | $9.710 | ($0.059) | $9.800 | $8.700 |
Salvatore Umek
Energy Management Institute
tel. 201.659.7410
cell. 201.697.5834
fax. 201.624.7164
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