Futures market energies and metals review march 3rd,2011
Review on Energies and Metals Market Be back to the futures trading markets, we will continue going on the way discovering the energy and metal markets with futures experts.
Now, we will start discovering the energy market with Daniel Cronin. Another week of rallying energy prices continued as tension in the Middle East, a falling dollar, and rising Greek debt issues fueled the fire under crude prices. Fighting increased between Libyan rebels and troops loyal to Muammar Qaddafi, reducing the nation’s crude-oil output by as much as 1 million barrels a day.
The contango in the wti vs brent contract is still in effect but rallying here as the April arb now trades at -$11.00. WTI spreads in the front still higher as traders gobble up the front month contracts here with May/June now trading -50 and the June/Dec looking to go backwardated. Because the US Dollar is falling and it’s still fighting in Libya, this Crude market will likely continue to rise and $110 is next on the horizon.
About Natural Gas, this market continues to slump now below $3.80 in the April contract as continued supply increases sell this market off. If this market gets below $3.70 which is great support then it could be headed for lower lows here on the NYMEX, even with every other energy moving higher.
How about metals? We will stop by those markets to see what’s going on. Precious metals continuing to move higher as last week saw a significant breakthrough in the Gold price of $1,430 which was huge resistance with this market testing this four times now.
While Silver now well past the $34 level as this market shoots for higher highs as well. The continued fighting in the Middle East and the USD spiraling will only help continue the rally with these precious metals.
We will turn to have a short view of copper trading. Copper continuing to show resistance above $4.50 as this market was held in check last week with a declining equity market. The base metal traded down to below $4.40 and sits at $4.45 right now. Rallies could be sold here above $4.50 as Mr. Daniel believes prices will gravitate back to $4.20.