Crude Oil & Products Lower On Strong Dollar

06 Mar in Blog, commodity trading, crude oil futures, futures broker, heating oil futures, unleaded gasoline

The energy sector today was down sharply as was the entire commodity and stock markets due to China's 7.5% growth rate which was very disappointed to traders so today crude oil was sharply lower down almost 2 dollars settling at 104.90 a barrel, while unleaded gasoline rallied towards the close only finishing down the 100 points at 3.24 a gallon while heating oil finished only down 200 points at 3.20 a gallon for the trading day. Natural gas was unchanged for the day right at contract lows at 2.35 per cubic feet in a lack luster trade today. The US dollar today was sharply higher for the fourth consecutive day the Euro currency continuing to collapse even though the situation in Europe seems to be coming to an end but investors are flooding into the dollar which is causing mass liquidation in the metals and  the grains except for soybeans and it's definitely hurting the crude oil and its products in the last week or so, however I do believe that crude oil and its products led by unleaded gasoline will move higher during the spring months and today was one of those days were everybody ran for the door at the same time but if you look at unleaded gasoline futures they only finished down hundred points and heating oil only finished down 200 points with very bullish closes in my opinion. Crude oil is still stuck in a range between 104-110 with monthly unemployment coming on Friday that could give a new direction in this market but what crude oil really needs is the lower dollar with all the commodities really need is a lower dollar but that is not happening at this time because people are feeling safer owning the dollar rather than owning the Euro currency. Tomorrow the energy sector has the API inventory report which comes out at 9:30 AM central time showing what the inventories of unleaded gas, heating oil, and crude oil will be and this generally can move prices during the day tomorrow. Also talks between Israeli Prime Minister and Barack Obama in the last several days points to  speculation that a possible invasion of Iran might not happen as soon as springtime as many people had predicted, but might not happen at all with renewed talks trying to be held with Iran here in the next week or so. I truly believe that talks are worthless with Iran and they will continue to go after the nuclear bomb therefore there will be a day In my opinion but I just don't know when, however Israel will attack Iran and prices will skyrocket at least for a short term, if you have any questions about the energy report or if you are looking to hedge energy products please call Michael Seery at 800-615-7649.

 

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