Central Valley Cooperative

Energy - mixed trade as the dollar fade lower - more August slow trade action focusing on Europe’s financial problems. September crude oil is trading $0.63 per barrel lower to $84.75 compared to $85.35 Friday at this time. September heating oil is higher by 0.61 cents per gallon to $2.9098 compared to $2.9229 at this time Friday. September RBOB gasoline is trading lower by 0.40 cents per gallon to $2.8182 compared to $2.8367 per gallon at this time Friday. The Brent – WTI crude oil spread narrowed from $23.25 to $23.21 per barrel premium to September Brent. Whatever policies are decided upon in Europe and the U.S. will move the dollar higher or lower. This is likely the key to the valuation of the energy futures markets. Key support point for the dollar index is 72.696 and key resistance point is 76.719. A break below 72.696 would be very bullish energy markets. A break above 76.719 would be very bearish energy markets. Of course, we need to keep an eye out of the global equity markets which currently indicate the global economy has a good chance to enter into a recession mode again.