Central Valley Cooperative

Energy - Lower trade as German economy slows - dollar recovers some - API later today. Disappointing German GDP and weaker than expected EU growth has cut global equities and pushed the energy complex lower. . Yesterday’s dollar trade dropped near long supports of 72.696 with a trade between 73.840 and 74.030 for most of the day after falling sharply early morning to this trade range. A break below 72.696 would be very bullish energy markets. Empire State Manufacturing Survey was negative giving us another indication that the U.S. economy appears to be slowing. Norway’s Statoil announces two huge discoveries of oil. A shell pipeline in the North Sea continues to leak oil. Global equities and currency trade continues to set the tone for the energy market. The key today may come from a German and French leadership meeting on the European problems. The Germans are tired of supporting the southern Europeans and we can only speculate that they may limit future assistance. Both countries now see evidence their economies are being influenced negatively.