Good Morning!
It was a forgone conclusion that Saudi Arabia was pulling a Barney Fife shooting themselves in the foot while trying to destroy the U.S. fracking and Oil companies to secure their market share and others are damned. Now that they pushed the envelope of pumping themselves and others into bankruptcy they want a helping hand and are asking for a $10 billion dollar loan. Small Oil Companies who were put out of business because of your actions are passing the hat to loan you money because of your offensive to keep your market share. NO SOUP FOR YOU! With the summer driving season approaching quickly regardless of the current glut we will see higher prices at the pump as refineries look at their profit margins and cost to change to summer time blends of Gasoline. In the overnight electronic session the April Crude Oil is currently trading at 3465 which is 1 tic lower. The trading range has been 3488 to 3446 so far.
On the Natural Gas front we have the EIA Gas Storage estimates today as rig counts continue to shrink, putting more people out of business. Thanks Saudi, you made your bed, now sleep in it. In the overnight electronic session the April Natural Gas is currently trading at 1.655 which is 2.3 cents lower. The trading range has been 1.682 to 1.650.
On the Corn front weak exports and farmer selling preparing for costs to garner the effort to grow this year’s crop. The doubt in this market weighs heavily on a hazy outlook in Energy prices which will contribute to Farmers costs and reality to be profitable. South American harvest is another factor and if La Nina strikes after El Nino we could see a possible drought and spike in prices. In the overnight electronic session the May Corn is currently trading at 357, which is ¾ of a cent higher. The trading range has been 357 ½ to 355 ½ so far. This month we will be jockeying for positions with Plantings on the horizon.
On the Ethanol front no trades were posted in the overnight session. The April contract settled at 1.378 and is currently showing doubt of which way to go with no bids or offers seen and activity with estimated volume of 1 and estimated open interest at 1,742.