Monday, September 27, 2010

Phil Flynn: The Oil Market Finally Decided To Join The Commodity Rally

The oil market finally decided to join the commodity rally after spending most of the week on the sideline. The power of the Fed cannot be ignored forever as the threat of stimulus is always lurking around the corner. With most other commodities putting in strong performances, oil and the products followed but only reluctantly. Some say the durable goods number was the catalyst or strong data from Germany yet more than anything was the rising tide of all commodities that floated the oil market boat. Natural gas is collapsing as the weight of oversupply begins to take its toll.

With Gulf storms seemingly not a threat to supply and the fact that a falling dollar really does not matter that much to this market, gas could start to fall even harder. The trade likes to play crude off of the gas market and that should lead to further downside pressure. Do you remember when OPEC seemed to matter? Dow Jones reports that the Organization of Petroleum Exporting Countries is unlikely to change production quotas at its next meeting in Vienna, scheduled for Oct. 14, as current oil prices are "comfortable," Kuwait's Oil Minister said Monday. Sheikh Ahmad Abdullah Al-Sabah added that he isn't concerned about global crude oil demand but is worried about.....Read the entire article.

Let’s Get Some in South "Let The Carnival Begin!"


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