ALERT: THE FORTUNES OF LIBYAN INSURGENTS RISE, AS DOES THE DOLLAR AT THE EXPENSE OF THE EURO, OIL MIXED AS A RESULT.
 
PETROLEUM MARKET

Market participants continue to look at any movement if favor of Libyan insurgents as letting some of the air out of the risk premium balloon. Oil prices declined yesterday as the US dollar strengthened and concerns about tensions in Libya eased as allied forces made more progress against Qaddafi's troops. Prices slipped to a 4-day low of 102.1 before settling at 103.98. These declines came even after data showed US personal income and and spending on the rise. Formerly  these bits would have had prices off and running as indicative of an improving economy and subsequently rising energy demand. Elsewhere in the Middle East, talks of the departure of Yemen's President Ali Abdullah Saleh stalled while Syrian security forces were reported of attacking protesters in Daraa. The urgency of threats to supply appear to be waning, Europe's on going problems are costing the euro to the benefit of the dollar so oil prices have been coming down from recent highs. This is a good thing and should continue, but remember the next headline could change everything.
 
 
TECH TALK

The "M" top keeps tracing out with today's significantly lower low of 102.70. Prices should consolidate at the bottom of the "V" at the "M"'s middle in the 97.00-99.00 area, as prices approach 100.00 it will be time to square up so a pressure-free assessment of the next move can be made.

 
NATURAL GAS

Even though gas notched another new high for the current move yesterday, it is too soon to be sure the long term lows are in with the fundamentals as weak as they are. But it also seems that momentum remains intact with the posting of another new high. Naturally this begs the question, how high can it go, particularly with the weather about to break. That consideration could be seen in yesterday's pullback. After putting up a seven week high. It has to eventually dawn on market participants that supply will outpace demand with end of winter's heating needs with strong production expected to continue. Do not stay too long at this party, the music could stop abruptly, and those without a seat may have to give recent gains, and more, back.
 
 
TECH TALK

Gas is losing upside momentum as evidenced but selling late in yesterday's session and little overnight recovery. While further advances can not be ruled out the market should continue to struggle above 4.496. A drop below 4.213 will re-target recent lows at 3.731 but a breakout above the previously mentioned 4.496 will target the old high at 4.879.

source: KilduffReport.Com