API Bullish Crude and a tad Bearish Products
Last night’s API showed that inclement weather, fires and disastrous foreign policy in countries such as Iraq, Libya and Nigeria show that the lack of moving product does reflect our prices at the pump. And to all Bernie Sanders followers my condolences in a hard fought battle but you do not want to follow the socialist Venezuela’s lead who cannot export oil even if they wanted to because they cannot keep the electricity on to do so with the corruption that government has lived through going back to Hugo Chavez.
In the overnight electronic session the July crude oil is currently trading 5100 which is 64 points higher. The trading range has been 5112 to 5032. With the FED most likely to sit on their hands next week and not raise rates due last Friday’s jobs number and no major economic or Brexit surprises in the wind we should be on a drive to $60 a barrel as we close in on the busiest weekend of the driving season the 4th of July weekend. This morning’s EIA data could even further catapult prices higher.
On the natural gas front the market has all the witches brew in the cauldron to take flight. And if the heat dome hits as forecasted demand will be like lighting dynamite. In the overnight electronic session the July natural gas is currently trading at 2.489 which is 1 ½ of a cent higher. The trading range has been 2.499 to 2.477. Tomorrows weekly EIA Gas Storage could light the wick.
On the corn front the grains are recovering from yesterday’s selloff and investors seemed to be buying value down below. In the overnight electronic session the July corn is currently trading at 429 ¾ which is 2 cents higher. The trading range has been 430 to 426 ½. Here is another market poised to explode to the upside.
On the ethanol front the July contract is currently trading at 1.702 which is a ½ of a cent higher in the overnight electronic session. The trading range has been 1.702 to 1.701. Expect further strength in this market as it will follow corn and energy prices. The market settled Tuesday’s session at 1.702 and is currently showing 2 bids at 1696 and 2 offers at 1.710. Unless we see a break to the downside on corn and crude the bids at 1.696 are dreaming.