Alaron Energy Comment

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

What the Friggtriskaidekaphobia is going on? Or should I say paraskeidekatriaphobia? Well oil bears probably have come down with a bad case of that malady and might freak out especially if a black cat happens to cross their path. (Or if oil crosses the $140 resistance) The Fear of Friday the 13^th    is permeating the world's petroleum markets and controlling the very dark parts of every traders mind... Well ok maybe it's not fear of Friday the 13^th but the markets are running on fear. Even more fear than Kevin Bacon had in Friday the 13^th. Yes we are talking 6 degrees of Kevin Bacon here what do they have to fear so anything could happen. Yet the fears that drove the market seemed to come out of Nigeria.

First there was a report from Bloomberg that Nigerian National Petroleum Corporation took over operations in the Ogoni district of southern Nigeria from a Royal Dutch Shell joint venture. Nigeria's President Umaru Yar'Adua said the move might calm down unrest from local residents.

Of course the move did not calm down the energy market's that is as fragile as nitro glycerin when it tries to sell off.

If that wasn't enough to blow the correction to smithereens then another Nigerian Headline might have done the trick.

Strike talks between Nigerian oil workers and Chevron s oil workers seemed to be breaking down which might mean that that precious sweet crude could be taken off the market. This market wants sweet crude and Nigeria oil is prized

Of course oil may fear what may or may not happen with the dollar and what inflation fighting measures may come out of the G-8. Over Night Dow Jones reported that Japanese Finance Minister said he spoke about currency issues with US Treasury Secretary Henry Paulson or Hank as I like to call him but they offered no details. Still just because they talked about it means the market is expecting them to do something about it as talk is cheap and the dollar is cheaper. Cheap dollar more inflation either raise rates in the US or the G8* needs to move to support the currency. The Dollar likes it.

Of Course slowing demand fears is what keeps OPEC awake at night. That and sleeping on those dollar stuffed mattresses. One of the reasons Poacher raising production is that they see the oil demand growth slowing and spreading around the globe. OPEC is saying that OIL demand Growth will slide to 1.28% as compared to 1.35% last month. They also that China accounts for 40% of total 2008 demand growth. They also revised NonOpec supply growth by 50k barrels.

Then Bloomberg reported that Saudi Arabia is likely to propose a sizable increase at a June 22 meeting with consumers to lower prices. They are concerned that high prices will hurt the long-term interest of consumers. They also said that they would start pumping oil from Khursaniyah field!  Maybe! Let's see if they can follow through.  

Goodbye retail! Why sell gas when you can make money selling oil. Exxon Mobil Corp. said it's getting out of the retail gasoline business. That is right. Why deal with the struggling retail end when you make billions and billions on exploration and production?

Exxon said it plans to sell it now plans to sell to its distributors its remaining 820 company owned stations and another 14oooutlets and will lease out the Exxon Name. So you still have the option of putting a tiger in your tank if you want to

.

You don't have to be a tiger to trade with me! Just call and purr a bit and I will get you all set up. Also call for your free trial of WWW.alaronenergies.com and get on the Phil Flynn Energy Blast! Just call me at pflynn@alaron.com or call me at 800-935-6487. And if you need some purr-fect Business news you have to check out The Fox Business Network! If you don't get it you are no cool cat so order it today!

Sell July Crude at 140 stop 14200

Sell July RBOB at 360 stop 365

Buy July Heating Oil 36000 stop 355

Long July Natural gas apprx 1240 raise stop to 1245!!!!

Phil Flynn

Alaron Research Team

800.563.9510

pflynn@alaron.com

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