Today’s inventory report just released by the EIA was very bearish with surprise across the board builds of everything including crude oil as imports increased and demand continue to decline. The year on year deficit of crude oil improved while the overhang of gasoline and distillate widened. Gasoline is now over 120 million barrels above where we were last year at this time while distillate (HO 7 diesel) is almost 4 million above last year. Demand for the main products (gasoline & distillate) as well as the total once again declined on the week and remains below last year’s level.
The overall report is bearish as we suggested it would be but I must admit it is much more bearish than I anticipated it would be. With all of the other bearish news (discussed in this morning’s email) floating around the media the market is starting to look like we may have a solid down week for the first time in awhile.
Currently oil is down strongly on the EIA report and on the reversal of the dollar versus the Euro from this morning. For the moment the bearish news is far outweighing anything bullish in the near term. Expect prices to remain under pressure in the short term.
| Current Expected Trading Range | | | ||
| | 7/16/08 | Change | Upper | Lower |
| | | From | Resistance | Support |
| | 10:49 AM | Yesterday | | |
| Aug WTI | $133.80 | ($4.94) | $150.00 | $130.00 |
| Aug HO | $3.8060 | ($0.1130) | $4.0000 | $2.7100 |
| Aug RBOB | $3.2577 | ($0.1271) | $3.7500 | $3.0000 |
| Aug NG | $11.266 | ($0.211) | $13.500 | $11.000 |
| | | | | |
| Euro/$ | 1.5806 | (0.0017) | 1.6000 | 1.5200 |
| Yen/$ | 0.9584 | 0.0030 | 1.0450 | 0.9000 |
The Energy Management Institute operates a fleet of daily, weekly and biweekly energy publications covering various angles of the energy market, including over a decade of natural gas and power price indexing. In addition, EMI provides higher learning for energy professionals with comprehensive, fully accredited, energy education programs from basic to advanced level. It also provides critical business information services and thought leadership in the energy segments of Oil, Gas, Power, Alternative Fuels, soft commodities and metals.
For more info visit our website (www.energyinstitution.org), email EMI at info@energyinstituion.org or call 888-871-1207
Dominick A. Chirichella
Energy Management Institute
tel 646-202-1433
fax 801.383.7510
This message and any attachments relate to the official business of the Energy Management Institute ("EMI") and are proprietary to EMI. This e-mail transmission may contain information that is proprietary, privileged and/or confidential and is intended exclusively for the person(s) to whom it is addressed. Any use, copying, retention or disclosure by any person other than the intended recipient or the intended recipient's designees is strictly prohibited. If you are not the intended recipient, you are hereby notified that any disclosure, copying, distribution or the taking of any action in reliance on this information is strictly prohibited. If this message has come to you in error, please immediately notify the sender by telephone or return e-mail and delete the original transmission and its attachments without reading or saving in any manner. Thank you.
No comments:
Post a Comment