SubscribeDaily Futures Commentary COMMODITIES March 13, 2009
Friday, March 13, 2009
ENERGIES
Yesterday’s strong gains in May Crude Oil were triggered by two factors. The first factor was optimism that the worst of the recession may be over and that demand will begin to pick up. The second factor was speculative traders making bets that OPEC would lower production targets a fourth time since October. These two factors attracted new buying and scared weaker shorts out of the market.
Today could be a volatile day as the struggle between the bulls and bears could escalate ahead of this weekend’s OPEC meeting. It’s hard to predict whether there will be another cut because of opposition by Saudi Arabia. The Saudi’s want to see full compliance by OPEC member with the last three cuts before agreeing with the current production cut. Russia, Venezuela and Iran are already in favor of a production cut.
METALS
April Gold and May Silver prices got a boost yesterday when the Swiss National Bank intervened in the Swiss Franc market in an effort to stimulate the economy by making the Swiss Franc cheaper. …
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