Energies Futures Update

Crude Oil trading sideways for the last three sessions in a 73.50/75.20 range found some support from the National Hurricane Center of a tropical disturbance that could eventually strengthen and affect the refineries from the Texas region. We feel that more upside are possible with the middle east crisis and with Crude Oil trading above $75.00 this morning a target at 76.80 is in the cards depending on tomorrow’s inventories. We stay carefully bullish.

Natural Gas jumped 7.5% yesterday essentially on hot weather forecast and on potential hurricane risk in the coming weeks. We still consider this advance as a bear market rally even if the close above $6.50 level brighten the picture short term.