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May 2012
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Archive for the Options & Futures Category

Natural Gas Inventory Rises -

Natural gas inventory exceeded analyst expectations and increased 61 billion cubic feet last week.  The Energy Department indicated that natural gas inventory levels are at 2.667 trillion cubic feet.  Inventory levels remain higher than the same time last year.

To read a related Businessweek article, please click here:

http://www.businessweek.com/ap/2012-05/D9UQLV900.htm

Jim Sutliff

Yield Falls On Ten Year TIPS -

The yield on 10 year Treasury Inflation Protected Securities (TIPS) fell into negative territory for only the third time in history. A recent U.S. government sale of $13 billion in 10 year TIPS sold at a negative yield of 0.391%. The safety of US Treasuries and the possibility of another round of quantitative easing drew investors. Yields rose for ten year bonds from Spain and Italy. Ten year yields for Spain touched 6.288% in trading and Italian yields rose to slightly over 5.8%.

To read a related Wall Street Journal, please click here:

http://online.wsj.com/article/BT-CO-20120517-711941.html

James Sutliff

Euro Trades Lower -

The Euro traded at $1.2752 which is the lowest mark since January 18th.  The Euro has fallen in five of the last six trading sessions.  Ten year yields on Italian and Spanish debt rose to 6% in trading.  GDP in France remained flat and the Italian economy contracted .08%.

To read a related Fox Business article, please click here:

http://www.foxbusiness.com/markets/2012/05/15/euro-slides-to-four-month-low/

Jim Sutliff

Gasoline Inventories Fall -

Gasoline inventories declined 2.6 million barrels and distillate inventories fell 3.3 million barrels.  The Energy Information Administration also indicated that crude oil increased 3.7 million barrels which was greater than the 2 million barrel increase expected by analysts.  Inventories of crude oil at Cushing Oklahoma rose to 44.1 million barrels.

To read a related Nasdaq article, please click here:

http://www.nasdaq.com/article/oil-futures-crude-pares-losses-following-inventory-data-20120509-01176

James Sutliff

Natural Gas Prices Fall -

Natural gas prices fell 2.6% in Friday trading to cap off a week of price volatility.  Natural Gas prices during the week showed gains of as much as 4.5% and declines as steep as 5%.  June natural gas settled at $2.279 per million British Thermal Units.  Last week, there were 606 natural gas drilling wells which was a drop of 7 from the previous week.  The number of oil rigs increased to 1,355 from 1,328.  According to the Energy Information Administration, natural gas output fell to 72.32 billion cubic feet per day.  Inventories are at 2.576 trillion cubic feet which is almost 50% more than last year at this time.

To read a related Wall Street Journal article, please click here:

http://online.wsj.com/article/BT-CO-20120504-714022.html

James Sutliff

Manufacturing Data Sends Oil Higher -

According to the Institute of Supply Management, U.S. manufacturing for April increased the most in ten months.  The data sent crude oil prices higher in trading on Tuesday.  Crude oil prices rose above the 50 day moving average of $105.21 a barrel.  Technical trading gave prices a slight increase and crude settled at $106.20 a barrel.

To read a related Fox Business article, please click here:

http://www.foxbusiness.com/industries/2012/05/01/ism-data-lift-oil-prices/

Jim Sutliff

Gasoline Inventories Fall -

 Gasoline inventories fell 3.67 million barrels which exceeded analyst expectations.  Distillates also fell and were 2.91 million lower than the previous week.  The U.S. Department of Energy  also indicated that crude oil supplies increased by 3.86 million barrels.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2012-04-18/oil-pares-loss-on-rise-in-gasoline-heating-oil-supply.html

James Sutliff

Oil Inventories Rise 7.1 Million Barrels -

According to the U.S. Energy Information Administration, crude oil inventories rose 7.1 million barrels.  The inventory increase worked to drive crude oil prices lower in trading.  The increase exceeded analyst expectations of a much lower 2.2 million barrel rise in inventory levels.  Gasoline inventories went in the opposite direction and fell 3.5 million barrels.  Analysts had expected a decrease of only 1.5 million barrels.

To read a related Wall Street Journal article, please click here:

http://online.wsj.com/article/BT-CO-20120328-711709.html

Jim Sutliff

Natural Gas Inventories Build -

Natural gas inventories rose 11 billion cubic feet to 2.380 trillion cubic feet.  The increase in natural gas inventories was the first of the year and was driven by warmer than normal winter weather.  The rise in inventories sent natural gas prices lower at most major markets.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2012/03/22/markets-natgas-spot-idUSL1E8EM87W20120322

Jim Sutliff

Crude Oil Rises On Iran -

Crude oil spent most of the day in a trading range of $105 to $108 a barrel.  The rise in crude oil prices and trading volatility came after oil exports from Iran were estimated to have dropped 300,000 barrels a day.  The weaker U.S. Dollar also sent prices higher in Friday trading.

To read a related Fox Business article, please click here:

http://www.foxbusiness.com/markets/2012/03/23/oil-prices-rise-sharply-on-drop-in-iranian-exports/

James Sutliff

Treasury Prices Fall -

Treasury prices fell on Monday and yields hit new highs for 2012.  Ten year Treasury yields rose .08% in trading and  extended gains from the previous week.  A recent Federal Reserve policy statement indicated an improved economic outlook.

To read a related Wall Street Journal article, please click here:

http://online.wsj.com/article/SB10001424052702304636404577291321094850602.html?mod=WSJ_Markets_LEFTTopStories

Jim Sutliff

Gold Continues Decline -

Gold continued to slide and fell to the lowest level since January 25th.  Traders weighed Federal Reserve statements on the economy and gold fell almost 2 percent.  Gold traded near $1,670 an ounce and continued to decline in electronic trading.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2012-03-13/gold-advances-with-equities-before-federal-reserve-meeting-greek-bailout.html

James Sutliff

Crude Settles Higher -

Crude oil settled over $107 a barrel which is the highest level since March 1st.  Crude oil prices were supported by positive jobs data that may be a sign of economic growth.  However, warmer weather may weigh on crude prices in the coming weeks.

To read a related Wall Street Journal article, please click here:

http://online.wsj.com/article/SB10001424052970204603004577271291163661170.html?

Jim Sutliff

Crude Oil Almost Hits $110 -

Crude oil almost hit $110 in Friday trading and settled at $109.77 a barrel.  This is the highest level that oil has traded at in the last 9 months.   The conflict with Iran is the driving force behind higher trading prices.  Iran is the second largest oil producing nation in OPEC with an output of 3.5 million barrels a day.

To read a related Wall Street Journal article, please click here:

http://online.wsj.com/article/SB10001424052970203918304577243120332014742.html?KEYWORDS=crude+oil

James Sutliff

Natural Gas Inventory Declines -

The Energy Information Administration indicated that natural gas inventories declined by 166 billion cubic feet.  The decrease was greater than analysts had expected and more than the 102 billion cubic feet decline last year.  Prices remained low due to mild winter weather and high inventory levels.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2012/02/23/markets-natgas-spot-idUSL2E8DNDHW20120223

Jim Sutliff