Is it just me, or has the weather made you feel oddly tired of late. Anyway, I bring news of Energy this evening. (Pardon the pun, man is that corny.) The market has finally seen a week of losses with most coming yesterday after a bearish Department of Energy report. It was builds across the board, 3.7 million bpd on crude, 3.8 million bpd on gasoline, and 1.4 million bpd on heating oil/diesel. If I was a betting man I would of thought larger losses were in store, but so far in two days the market has given back about .03 cents on heating oil and .03 cents on gas.
Today's losses or lack of gains were due to weaker than expected retail sales and the unpredicted new jobless claims rise by about 11,000 to 444,000: Seems there is once again more folks looking for work. Also today came talks from the CFTC in the way of a proposal which would enforce position limits on traders in an effort to rein in excessive speculation in energy and commodity trading, mainly oil. As expected thus far the CFTC position is one of a light handed initial approach to limits, really only effecting the big players; of course those players insist regulations or limits make markets more volatile by, "distorting price functions and pushing traders to unregulated offshore markets". Time will tell how enforcement will work but in the short term it isn't news the bulls need. The short term outlook is bearish with some more downside most likely in store. Might be a good weekend to fill the tank, but hold off on locking in all of your spring gallons just yet.
Thanks for reading,
Zach Winter
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