NYMEX bounces, end negative

Posted by Mark Pszeniczny on Jun 1, 2010 9:10:00 PM

Almost on cue, the NYMEX sold off overnight as length added on Thursday was peeled away as what typically happens ahead of a long weekend. But, a surprise was in store as reports of May construction spending hit the wires and showed the largest monthly increase in years of 2.7%. Again, we weren’t starting from a very high number. The range bound action looks to continue for the short week as Inventory numbers will be delayed a day. What is surprising is with “Top Kill” of the leaking well officially dead, we haven’t seen a dramatic jump in prices. A few years ago, Crude would be $100 a barrel on such an event. The sensibility in the markets, fear of a still weak world economy and the overall bearish tone have kept the spill all but in check. As we mentioned last week, the Far East appears to be next in line for some economic Darwinism as weekend violence in Spain and Portugal spread due to those Governments actions to combat the worsening economy. Look for the see saw trade to continue as be ready for buying opportunities as some good values are still out there. All products fell hard into the close with Crude losing $1.39 to $72.58, HEAT lost .0341 to $1.9704 and RBOB fell .0441 to $1.9825

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Topics: Construction Spending Up, The Market, NYMEX

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