Energy - Lower with euro zone concerns, firmer dollar, weaker global equities - Natgas stocks today. The U.S. dollar is bouncing off some critical support and appears firm at this time. The dollar strength is pressuring commodities lower. Yesterday’s inventory reports did little to shake the market as the gasoline draw of 3.509 million barrels has occurred with only a couple of weeks left in the official U.S. driving season. With so many unknown economic problems globally, the trade is running from rumor to rumor. Gadhafi compound and Tripoli as a city remains the last major holdout for Gadhafi. Libyan rebels are closing in and pressuring for the final push to oust Gadhafi. They have recovered control of the key refinery in Zawiyah. We have chances next week of a tropical storm impact on U.S. energy assets.
The energy complex appears very negative, but here comes a potential tropical storm with possibilities to target the eastern Gulf of Mexico. The latter is weather forecasts that can change many times before we could see any action next week. The Germans and the French failed to provide the magic early in the week and now the European banks are being scrutinized. It is perhaps too early to tell, but this could be another major down day.
