by Brian Schad | Aug 23, 2016 | Energy Futures, Natural Gas Futures
Natural gas futures have reached a two week high today as the outlook for the preferred air-conditioning fuel was seen bullish with “warmer than normal” forecasts across most of the country. Natural gas futures are up just over .04 cents today currently trading above $2.74 per million btu’s for September delivery at the New York Mercantile Exchange. Just yesterday, forecasters called for “scorching heat” across most of the USA through Labor Day causing natural gas traders to bid-up the energy almost .10 cents. The high at our nation’s capitol is even expected to be three degrees higher than normal to start September off. “We’ll see demand for natural gas (futures) as long as the weather stays warm and especially when it continues outside its normal parameters,” said Laura Taylor, a senior market strategist at RJO Futures in Chicago, sharing her fundamental assessment of the natural gas futures market. Taylor added, “I think natural gas traders biggest concern right now though continues to be the higher than normal inventory of the fuel.” Natural gas futures is at a crossroads at this time with a high-top possibly in place. If natural gas futures sustain trade below $2.50, then it can lead to a bigger sell-off, but a breakout above $3.00 resumes the up-trend. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL...
by Brian Schad | Jun 30, 2016 | Crude Oil Futures, Energy Futures
Crude oil futures have resumed lower today as one expert consultant has published his belief oil is still heading down to the $10 level because of a world “awash in crude.” Crude oil futures are down $1.18 today currently trading at $48.70 per barrel at the New York Mercantile Exchange. This professional consultant feels recent gains since the February low isn’t justified with the outlook of crude oil that collapse the energy market in the first place – such as the wildfires near the oil sands region of Canada, cuts in output by politically unstable countries such as Nigeria & Venezuela, or even the hopes of American fracking efforts subsiding all played a part of this recent oil price surge. In the meantime, the Persian Gulf allies and the Saudi’s have been playing a futile game of bluffing with the world’s other major oil producers. “But the world continues to be awash in crude, and American frackers have replaced the Organization of Petroleum Exporting Countries as the world’s swing producers. The once-feared oil cartel is, to my mind, pretty much finished as an effective price enforcer,” said A .Gary Shilling, president of his namesake’s New Jersey-based consultation firm, sharing his fundamental assessment of the crude oil futures market. Shilling added, “Even OPEC’s leader, Saudi Arabia, is acknowledging the new reality by quashing recent attempts to freeze (crude oil) output, borrowing from banks and preparing to sell a stake in its Aramco oil company as it tries to find new sources of non-oil revenue.” The technical trend for crude oil futures has recently rolled over back “down” with lower-highs and...
by Brian Schad | Jun 7, 2016 | Energy Futures, Gasoline Futures
Gasoline futures are down two weeks in a row after six-month highs were made just poor to Memorial Day weekend because of record usage and the lowest pump prices in a decade. Gasoline futures are down nearly .03c from last week currently trading at $1.5862 at the New York Mercantile Exchange. The Energy Information Administration said today that gasoline usage which typically peaks between Memorial and Labor Day will average a record-breaking 9.5M barrels during the second & third quarters – up slightly from the prior May forecast. Gasoline prices have fallen from $2.63 this time last year. to a forecasted price of $2.27 per gallon for the 2016 driving season. Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, shared his fundamental view of the gasoline futures market by stating, “Despite crude oil prices grinding higher and record gasoline usage predicted, we’re seeing gasoline prices tapering off – disconnecting with crude you can say.” Craney adds, “Low gasoline prices alone are what’s driving the gasoline demand. People want to get out more if they can afford it.” The technical trend for reformulated-blend gasoline futures is at a crossroad from being up at its high only three weeks ago. If gasoline futures were to extend their lows tomorrow, that could change the trend to down – a win for the consumer. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL...
by Brian Schad | Apr 28, 2016 | Energy Futures, Gasoline Futures
Gasoline futures have reached three month highs this week on reportedly record demand. Gasoline futures are down a mere 22 points today currently trading at $1.5925 per gallon at New York’s Mercantile Exchange. The world’s biggest oil producers are said to have failed in agreeing to an oil output freeze at a time when domestic gasoline demand is surging. With the American peak summer driving season still approaching, US gasoline consumption rose to 9.25 million barrels a day in March – an all-time high for that month – according to the American Petroleum Institute this time last week. Scott Roberts, co-head of high yield investments and manager of $2.7 billion at Invesco Advisers Inc. in Atlanta, shared his fundamental view of the gasoline futures market by stating, “It doesn’t make sense to go short ahead of summer because of strong gasoline demand.” Roberts adds, “Refiners are coming back and with that crude demand.” Gasoline futures is up with no top yet in sight one month ahead of the Memorial Day weekend peak driving demand holiday. Even with record demand, gasoline futures remains well below “war-era” prices and I wouldn’t be surprised to see even lower gasoline prices at the end of the year. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL...
by Brian Schad | Apr 26, 2016 | Energy Futures, Natural Gas Futures
Natural gas futures extended its sell-off from yesterday reportedly as forecasts predicted for cooler temp’s in the heartland to the eastern regions are driving prices lower. Natural gas futures are down 34 points today currently trading at $2.153 per btu at New York’s Mercantile Exchange. This is the time of year when natural gas traders try to determine spring gas demand by closely monitoring weather forecasts just before warmer weather increases demand. Warmer weather in the southern states is cooling and models now predict “mostly average to below normal temperatures” in the continental 48 states. Laura Taylor, a senior market strategist at RJO Futures in Chicago, shared her fundamental view of the natural gas futures market by stating, “It’s not long until the gas-fired electrical demand is here.” Taylor adds, “The natural gas trade is eager to get this market going, but a sustained demand outlook is what most needed.” Natural gas futures trend is slightly bullish. After this recent sell-off it appears natural gas futures is prime for another spike higher, but for consumers the energy prices are still relatively low. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL...
by Brian Schad | Apr 7, 2016 | Energy Futures, Ethanol Market
Ethanol futures may be in for a setback as Archer Daniels Midland sold their Brazil ethanol plant and is mulling the selling of their three US ethanol plants. Ethanol futures are up 42 points this week near $1.50 per gallon on the Chicago Board of Trade. The agri-industry giant claims the business environment is in a “challenging” time for the biofuel, however, at one time the company was considered the leading champion of biofuels. Another reason, ADM cites, for closing down their Brazil ethanol plant is that they didn’t see their long-term objectives for their company, and their shareholders, being met. “If ADM is selling their biofuel ethanol plants, it may be a turning point in the ethanol (futures) market,” said Laura Taylor, a senior market strategist at RJO Futures in Chicago, sharing her fundamental assessment of the ethanol futures market. Taylor added, “With all of the bad press with ethanol and the EPA – as well as the public – the writing may be on the wall for the long-term use of ethanol products.” Ethanol futures have been in a tight sideways trading pattern for the past two years with a slight bias upward. With an agriculture giant such as Archer Daniels Midland looking to bow-out of the business, I am quite sure the ethanol futures market is watching the developments of this transaction closely. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR...
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