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Alaron Energy Comment

CHICAGO - May 13/08 - SNS -- Following is the energy futures comment from Alaron Trading Corp.

 

The  oil market pulled back as it tried to assess the damage that was done by the devastating earthquake in Chengdu,  China.
 
Tens of thousands of people were killed and many more injured and missing in the aftermath of the 7.9 magnitude earthquake. Reports of damage are wide spread and the government has ordered chemical plants to be closed. Power plants are also shut down as the market will try to  gage the long term impact.

The energy  market was also trying to  understand and absorb  why China's oil demand fell 3.8% in April, yet   China's demand is still up on the year by  9.8%.  China's inflation in April came in at a blistering 8.5% which was the second highest monthly level in 12 years. Of course the key will be what the Chinese government plans to do about it. In the short run they have moved to tightened monetary policy by raising rates on commercial banks by 50 basis points to 16.5%.

Are gas prices getting you down? Well hang in there because it won't be too long before you might have an alternative. The New York Times reports that Nissan Motor Company plans to sell an electric car in the United States and Japan in 2010.

The International Energy Agency lowered the world demand estimates as they lowered the China demand numbers as well.      

Check me out on the Fox Business Network! If you don't get it you need to call your cable operator today. Also call to get your free trial of Alaronenergies! Call me at 800-935-6487 or email me at pflynn@alaron.com to open your trading account.

Buy June crude at 12100 -  stop 11950.

Buy June heating oil at 33000 -  stop 32700.

Stopped on short June RBOB from apprx 31900  at apprx  32100.

Buy June natural gas at 1100 - stop 1070.

Have a GREAT day!


Phil Flynn

Alaron Research Team

800.563.9510

pflynn@alaron.com



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