Markets find strength ahead of Spring storm
With what appears to be a cruel joke by Mother Nature, sending us another 6 to 12 inches of snow for Friday, markets got the fuel they needed to push higher today. While the winter weather may be a simple coincidence, the real driver today appears to the ongoing unrest in Libya. After the President adressed the Nation Monday night, and all but assured us that NATO forces would take command and ground troops would not be committed, that plan is begining to look suspect. Over the last few days, Rebel forces have made little if any ground against the Gaddafi regime. Their reliance upon US and NATO air strikes to make any advances has put their chances of an overthrow in jeapordy. This, even on the heels of a long time supporter of Gaddafi defecting. Overnight the Lybian Foriegn Minister sought refuge, signaling to the West that the power appears to be fracturing. However, with the President authorizing use of covert operations, many point to this as the first step in a drawn out conflict. With Lybian product shut in, and Japaneese demand expected to pick up, we cant be all that surprised to see the bumps. The key will be in how long it will take for the jump to be peeled off. Speculative money appears in control for the time being and the slight drop in jobless claims is not facilitating a sell off by any means. At the close, Crude rose $2.45 to $106.72, RBOB jumped .0436 to $$3.1076 and HEAT led the charge adding .0502 to $3.0898.