NYMEX futures end mixed as concerns loom

Posted by Mark Pszeniczny on Apr 28, 2011 8:23:00 PM

What is funny about Todays title is that it seems that I have used it several times over the last month!  Another Groundhog Day with the Market up strong on the overnight, falling into negative ground late in the day and ending as a mixed bag at the close.  Investors were eager to jump in overnight as many weighed the FED Chairman's comments and the reluctance to raise interest rates.  The decision to keep rates extremely low signals to investors that the US economy still has some hurdles to jump before we are all fat and happy again.  That policy is weighing heavy on the greenback, pushing it to a 33 month low.  We all know the corollary is the high Crude and product prices as inflationary hedges from investors.  The news the economy only grew 1.8% last quarter while most were expecting a 3.1% increase did little to ease rising NYMEX prices.  Yet around mid session a sell off materialized that had both products negative for some time.  HEAT was able finish in the red as it fell a mere 18pts to $3.2316, RBOB keeps pushing higher as it gained .0104 to $3.4298, while CRUDE gained .10 to $112.86.  With $28 crack spreads on gas, it is not hard to see how Exxon posted 69% Q1 profits.   While it is easy to point to middle eastern unrest as the cause of this surge, it is tough to defend as supplies in the US are still at very healthy levels.  End result is that this bubble has to burst.  Hopefully soon. 

 

heat chart

 

RBOB CLOSE
                      CLOSE       CHANGE
 MAY    34298       +.0104
   JUN    33696       +.0114
     JUL    33230        +.0117
  AUG    32831       +.0100
  SEP     32443       +.0075
  OCT    30856        +.0062
HEAT CLOSE
          CLOSE    CHANGE
MAY    32316       -.0018
JUN    32459      -.0022
JUL    32619      -.0027
AUG    32785        -.0031
SEP    32951       -.0036
OCT    33103        -.0043

Topics: FED holds interest rates, Bernanke, Dollar falls

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