Futures end month on soft note

Posted by Mark Pszeniczny on May 28, 2010 9:09:00 PM

Thursdays buying frenzy continued into this morning session as early morning markets were up over 3 cents. A variety of news items led to the jump yesterday most importantly was the announcement of a “busy” hurricane season and the President declaring a 6 month halt on offshore drilling so the current process can be evaluated. While since 2004, every hurricane season has been forecasted as busy, that wolves cry has begun to fall on deaf ears. The true reason for Thursday looks to be more of traders adding length ahead of the long weekend before getting out of Dodge. As we said the overnight jumped on the momentum and continued as the GDP reported 3% growth and unemployment benefits fell by roughly 14k last week. But in true NYMEX fashion, rather than shooting higher, the markets reversed around noontime and actually traded negative, losing over 3 cents in value. The seesaw action looks to continue as we bounce between the 1.90 and 2.00 range for HEAT. The tension mounts as we wait and see if the length gets peeled off on Tuesday. At the close, JULY RBOB went off down .0088 to $2.0266, JULY HEAT lost .0052 to $2.0045 and CRUDE lost .58 to $7397.

Topics: moratorium on offshore drilling, unemployment benefits fall, GDP up, The Market, NYMEX

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