Alaron Energy Comment

CHICAGO - Jan 22/08 - SNS -- Following is the energy futures comment from Alaron Trading Corp.

It's melting! I know what you're saying that it is too cold outside to melt anything but obviously it's  not cold enough to stop a global stock market meltdown. In fact this looks like the biggest meltdown since Encino Man.

The US credit/subprime/financial crisis obviously are not just a US issue because when the US sneezes, despite talk  to the contrary, the rest of the world catches a cold. The Bank of China is taking a huge write down to the tune of 2 billion dollars. Japan is talking recession. World stock markets are taking it on the chin and the world is worried that if the world's largest consumer of, well just about everything, goes into recession is obvious that their own economies will be affected.

And for oil, as I have saying for weeks, if the US goes into recession the world will feel it and  there is no way oil can hang onto these lofty levels. There are going to be significant challenges for the world economies going forward creating significant downward pressure on the price of a barrel of oil. The price of oil can come down dramatically and have one of the most significant corrections in years.

Bad day for Ahmadinejad, little Mahmoud the Pain and President is losing favor not only with the Iranian people but the grand exalted so and so Ayatollah Khamenei. It seems that Iran, one of the world's largest owner of oil and gas, is experiencing gas shortages in the country. Ahmadinejad has been a disaster for the Iranian economy and shortages of goods  and rising unemployment is a testament to his failure. What good  is $80.00 a barrel crude if your people are suffering! It's no wonder they pray for  $200.00 oil. The world needs to be careful of desperate leaders.  They  need high oil prices to cover up for their mismanagement of the economy and for all the corruption that pervades the Iranian government.

Crude supplies should rise again this week maybe as much as 4 million barrels. I also expect gasoline supplies to increase by 2.5 million barrels and distillates by 1 million barrels. Runs should be steady.

Is your broker still holding out for $100 barrel oil? It's time for you to transfer your   account to me! Open up your new account today! Just cal Phil Flynn at 800-935-6487 or email me at pflynn@alaron.com. You can also  get signed up for my email blast and get a free trial to Alaronenergies! Do it before the ice melts!

We're short  February crude oil from apprx 9999 and bought it back at  apprx 9057!!! We have rolled to a short March position from apprx 8992 - stop 8800!  

We're short February RBOB from apprx 24500  -  lower stop to 22650!!!

We're short February heating oil from apprx  255 -  lower stop to 247!

Sell February natural gas at 785 -  stop 805.

Late breaking...Big Time Ben Bernanke has given us a big-time rate cut of 3/4 point.  So far the oil  market gave us a momentary bounce.    

Phil Flynn

Alaron Research Team

800.563.9510

pflynn@alaron.com

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