Oil speculators cheer position limit decision

Spain and Iran vie for attention

The New York Times reported that Iran’s president admitted Tuesday that the American-led economic sanctions on the country were partly to blame for a breathtaking 40 percent fall in value of the Iranian currency, the rial, over the past week.

Wow! Maybe he isn’t so dumb after all! Then the Times said, “He pleaded with Iranians not to exchange their money for dollars and other foreign currencies.”

Yes, but did he say pretty please? He also is trying to blame those evil speculators! Just forget about that 29% inflation rate! That has nothing to do with that plunging currency. Of course not!

Spain plays hard ball by hinting they may not ask for a bailout! While the market is spooked a bit, do not believe it for a minute! A good bluff will secure them a better deal!

Bloomberg News reports that natural gas fell for the first time in seven days after rising to a 10-month high on speculation that cold weather next week will boost demand for heating fuels. Gas for November delivery slid as much as 3.5 cents, or 1 percent, to 3.496 per million British thermal units in electronic trading on the New York Mercantile Exchange. It was at $3.502 per million Btu at 11:41 a.m. Tokyo time. Futures rose 5.1 cents, or 1.5 percent, yesterday to $3.531 per million Btu, the highest settlement price since Dec. 2. The contract hasn’t closed lower since Sept. 24. Prices dropped after the 14-day relative strength index rose as high as 74.5 yesterday. A reading above 70 is a sign that contracts are overbought. The RSI was 72.7 today. Commodity Weather Group LLC predicted below-normal temperatures in the Northeast and Midwest over the next six to 15 days. Heating demand in the lower 48 states may be 60 percent above normal Oct. 8 through Oct. 12, data show from Weather Derivatives in Belton, Missouri.

About the Author
Phil Flynn

Senior energy analyst at The PRICE Futures Group and a Fox Business Network contributor. He is one of the world's leading market analysts, providing individual investors, professional traders, and institutions with up-to-the-minute investment and risk management insight into global petroleum, gasoline, and energy markets. His precise and timely forecasts have come to be in great demand by industry and media worldwide and his impressive career goes back almost three decades, gaining attention with his market calls and energetic personality as writer of The Energy Report. You can contact Phil by phone at (888) 264-5665 or by email at pflynn@pricegroup.com. Learn even more on our website at www.pricegroup.com.

 

Futures and options trading involves substantial risk of loss and may not be suitable for everyone. The information presented by The PRICE Futures Group is from sources believed to be reliable and all information reported is subject to change without notice.


Comments
comments powered by Disqus