SubscribeDaily Futures Commentary COMMODITIES 022709
Friday, February 27, 2009
ENERGIES
April Crude Oil is erasing gains from yesterday as traders are reacting negatively to the news of the drop in Japanese factory and automobile production. The slowdown in production means less oil will be needed.
Earlier in the week the market found support from an unexpected drop in gasoline inventory stocks. Losses may be limited today as talk is circulating that OPEC will announce another production cut at its next meeting on March 15. Russia, Iraq and Venezuela have already voiced approval of the impending announcement.
METALS
April Gold and May Silver are up overnight as global stock markets are selling off on the news that the U.S. may obtain up to 40% of Citigroup common stock. Although not officially nationalization, traders are seeing otherwise and selling equity positions. Fear that more “nationalization” may take place is leading traders to dump banking stocks. The money leaving the stock market may be flowing back to safer assets such as gold, Treasury Bonds and the U.S. Dollar.
May Copper is under pressure this morning. …
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