SubscribeDaily Futures Commentary COMMODITIES March 16, 2009
Monday, March 16, 2009
ENERGIES
May Crude Oil is expected to feel selling pressure today as over the weekend OPEC voted to leave current production cuts intact. OPEC officials fear that a production cut at this time could be detrimental to the world economy as it attempts to rally out of the current recession.
With compliance at roughly 80%, OPEC feels confident that its current production cuts are enough to keep prices stable between $35 and $50.
Traders should continue to monitor economic conditions in the U.S. and China as a demand gauge. OPEC can only control supply; the global economy is controlling the demand. OPEC is hoping that the start of the driving season in the U.S. will help drive up demand for crude oil.
METALS
Higher equity markets are helping to drive down demand for April Gold and May Silver. This is leading traders to sell gold and reallocate the funds into paper assets. Investors are reducing demand for precious metals used as protection against future banking crises.
As long as the banking …
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