Its Energy Thursday, hopefully most are to busy in the field to read the coop blog. But, in case anyone is wondering about the energy market, here is the news; Crude jumped by more than two dollars this week to settle at $84.27, well above this weeks resistance point. Product jumped at the rack this week, a dime on gas and about fifteen cents on diesel. It appears that trade today was highlighted by thinner pre-holiday trade, which will become prevalent Monday as profit takers exit the market. There have been reports of increased money into commodities markets as we begin the second quarter, but the daily directional hand has still been the dollar. We may be moving into a new crude trading pattern which will be the 80-90 dollar range, which has been talked about by hedge fund managers for months. Next week will provide a good market gut check. My advice is fill the tank and do not be scared to lock some gallons, as we move into what will hopefully be a busy spring and summer.
If economic data continues to look positive and the dollar shows more weakness, we could be in for an expensive summer of fuel. At some point we will most likely see a separation from the dollar to fundamentals, but with fundamentals weak, I don't see that coming until the data supports the price, yes that's correct not the other way around.(rather cynical, but self perceived as accurate) Tomorrows unemployment data will be released and today's market gamblers were betting on positive news, believing some job growth has been had. The market will be closed tomorrow, but the employment data could set the tone come Monday.
Have a good weekend and enjoy 80 degrees tomorrow.
Zach Winter
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