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Review Metals Market for The New Week: 3/7/2011

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The Metals Review
For the week of March 7th, 2011

Another week of rallying energy prices continued as tension in the Middle East, a falling dollar, and rising Greek debt issues fueled the fire under crude prices. Fighting increased between Libyan rebels and troops loyal to Muammar Qaddafi, reducing the nation’s crude-oil output by as much as 1 million barrels a day. The contango in the wti vs brent contract is still in effect but rallying here as the April arb now trades at -$11.00. WTI spreads in the front still higher as traders gobble up the front month contracts here with May/June now trading -50 and the June/Dec looking to go backwardated. With the US dollar falling and still fighting in Libya this Crude market will likely continue to rise and $110 is next on the horizon.

Natural gas continues to slump now below $3.80 in the April contract as continued supply increases sell this market off. If this market gets below $3.70 which is great support then it could be headed for lower lows here on the NYMEX, even with every other energy moving higher.

That's what we can learn about the crude oil and natural gas this week. I hope that the information shared by Pitguru Daniel Cronin will help guide your decision on your trading during coming days. By the way, whenever you have time, other futures market reviews can effectively support your trading.
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