Energies & Metals Review on Feb 22, 2011
Energies on Feb 22
Unbelievable movement going on in the energy space right now as crude oil is up $7.00 from settle so over $97 as unrest in Libya sparks huge demand for crude oil. April crude now up to over $97 as this market is seeing offers lifted through the screen. Crude is hitting a 2-year high overnight and WTI spreads are rallying huge again as J/K wti up over $1.20 to -140 and Z/Z wti is over -80 cents. Both heat and gas cracks are getting liquidated as crude rallies on the overnight session with both front cracks down -250 respectively. It really looks pretty intense right now and I believe April crude may try and test $100. Look to take some profit above $98 as this crude market appears overbought on the upside here. The market just seems a bit nervous with the violence in Libya and once this fighting stops the premium in wti will come off a bit. Keep an eye on what kind of tension is going in Libya and other middle eastern places as this is having a huge effect on the market today.
Metals on Feb 22
Precious metals are called higher with the huge amount of tension going on in Libya as gold flatprice is up almost $12 to just under $1,400. March silver up over .60 cents making new highs as silver is now above $32 looking to eclipse $33. Many traders and investors have been playing the silver side as this has been giving much greater returns than the gold price. Safe haven play is still in effect as this violence continues in the Middle East. Look for these metals to potentially fly high in today's session as I believe gold will get back above $1,400 and silver will get above $33.
The copper market is actually down tonight as equities are selling off due to the tension. Copper down 8 cents to below $4.40 in the overnight session and I believe will keep going lower as there is a bit more room to run on the downside. I did not like this market above $4.50 and would like to see this get to below $4.25 and then I would think about maybe picking some up down there. To much unrest in the market to be long this base metal right now.
- Daniel Cronin, Energies Guru