SEPTEMBER 7, 2010
FROM: RICK RUGLESS:
Today’s Market News
The energy markets are starting out the week lower due to concerns over the global economic picture and more evidence that fuel demand remains low.
Market Outlook
Today is the first trading day of the post summer driving season and markets are reacting by selling. The selling comes as traders look back on the lack luster demand over the holiday weekend and look ahead to continued weak demand. Traders are also seeing a stronger dollar and stocks futures pointing to a lower open as European bank concerns have returned to the forefront.
Energy values should remain lower today due to today’s European focus and no new U.S. economic reports scheduled to be released today.
Market Fundamentals
Tropical Storm Hermine:
The eighth named storm of this year’s Atlantic Hurricane season made landfall on the southern most Texas and Mexico border. Hermine was packing 50mph winds and heavy rain. Some areas of Mexico and Texas are expected to end up with as much as a foot of rain. There have been reports of flooding and power outages but no word on the impact on oil gas instillations in the area.
Hurricane Potential:
The next potential hurricane threat for the Gulf of Mexico could come from the rebirth of Tropical Storm Gaston. At this time, the storm is located over the Leeward Islands and preparing to move into the Caribbean Sea. The storm is projected to increase in strength once in the Caribbean.
Stock Futures:
The stock market is expected to open lower due to renewed concerns over the health of the European banks. The concerns came after news that many of Europe’s major banks have risky government debt on their books. The news caused European stocks to fall and helped to prop up the dollar against the euro.
Inventory Reports
: This week’s inventory reports will be released a day later than usual. The API’s report will be released on Wednesday at 3:30 PM and the DOE will release their report on Thursday at 10:00 AM.
