SubscribeDaily Futures Commentary COMMODITIES March 17, 2009
Tuesday, March 17, 2009
ENERGIES
May Crude Oil could be looking at downside pressure today due to speculation that weekly inventory levels will increase. Lower consumer demand due to the on-going recession is the main reason for the increase.
Crude oil may trade in the lower end of the recent $35 – $50 range due to OPEC’s decision to forego another production cut. OPEC wants to see compliance with its current plan to stabilize prices. Saudi Arabia has cut production by more than the agreed amount, but Iran and Nigeria have not cut by the desired amount. Iran is also on record as favoring additional cuts. This is just an example of how disjointed OPEC can be at times.
METALS
Lower equity markets could increase demand for precious metals today. The strength of the move all depends on the behavior of the U.S. Dollar. A stronger Dollar will keep a lid on gold prices. A weaker Dollar could bring in more aggressive buyers.
Longer-term look for April Gold and May Silver to drift lower as the need …
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