Oil prices finally breaking as global supply jitters start to ease

Production, meanwhile, rose 4 percent last week to 922,000 bpd, the highest reading since late December. One trader said the imports, which he said came from a Brazilian vessel supplying ethanol into Florida, came as a surprise. The futures contract closed 9 percent lower at $3.20 per gallon. Traders noted the current front-month contract, which is April, is due to expire on Thursday, prompting a sell-off of that month's paper. However, the May contract also dropped, closing 10.4 percent lower at $2.499 per gallon.

Mini Stimulus in China does not seem to be giving the oil market that much of a boost. China spending money on roads and railroads is not the shot in the arm that the oil bulls were hoping for. Copper also is not imposed and is working lower even after a massive aftershock in Chile the world's largest producer. Because there were no reports of damage to copper mines and little reported damage to Chilean ports the market is easing back on weakening demand expectations.

Natural gas report today

I am looking for a 76 bcf withdrawal. The big question the market will be asking is whether we can ever get back to full storage by next winter. Probably not! This is a bull market waiting to happen and any disruptions to production could send this market soaring.

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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.


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