SubscribeDaily Futures Commentary COMMODITIES March 18, 2009
Wednesday, March 18, 2009
ENERGIES
May Crude Oil pushed through $50 overnight on speculation that a recovery in the U.S. economy may lead to greater demand for crude oil. The rally could also be a vote of confidence that previous production cuts by OPEC may finally be working.
Over the weekend OPEC voted to leave production at current levels. The initial move was to the downside, but traders re-evaluated the supply/demand situation and decided OPEC compliance was high enough for the previous production cuts to limit supply.
Traders will be focused on today’s inventory report for direction. Pre-report estimates are for a slight increase in supply, but traders seem to be willing to ignore it. Continue to look for the uptrend to continue. There may be an acceleration to the upside if the market can go bid at $50.
METALS
Higher equity markets are eroding support for gold and silver. Speculators are lightening up their long positions as the banking crisis eases. April gold and May Silver look bearish over the short-term but longer-term traders still expect …
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