Alaron Energy Comment

CHICAGO - Jun 16/08 - SNS -- Following is the energy futures comment from Alaron Trading Corp.

Oh G8 and the great Saudi summit. � Inflation and its root cause. Is the rapid rise in commodity prices all about consumption or is it the weak dollar that dominates the world's commodity price structure in commodity price inflation?

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The G-8 was a bit of a disappointment as G8 leaders talked a good game on inflation but failed to really do anything about it. Inflation is bad, we got that. But how you fight it is another question. The Wall Street Journal said that, ‘They [G8 leaders] refrained from commenting on foreign-exchange rates in their final joint statement. However, the subject was a hot topic in meetings on the sidelines where U.S. Treasury Secretary Henry Paulson repeated his recent support for a stronger dollar.” Yet what �the dollar's impact on commodity price inflation is, is �still a matter of deep division and debate.

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The Journal says that, "The G8 says that high oil prices were fundamentally a reflection of rising world demand at a time of supply constraints. Yet there is also a call for more information on how much money is flowing into the oil market indicated that there are serious concerns among some G8 members as to the effect speculation was having in the market place.

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Talk about a very nice welcome to Jeddah gift. As Saudi Arabia �prepares for the great Sunday Saudi oil summit, the Saudis are putting their best foot forward by pumping an additional 500,000 or 200,000 barrels a day depending on who you believe or how you choose to do the math. The result will lead to the highest amount of Saudi oil output ever or at the very least the last 25 years. But will more oil calm the markets? What do the Saudis want in return? Well one thing is a call by consuming nations to do their part by lowering taxes on oil and gas to help bring down price and increase consumption. �The Saudis, according to the Wall Street Journal, are blaming the rise on the falling dollar, U.S. interest rate policy and the increasing involvement by investment funds.

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Don't forget to get the trading week started out right by signing up for the Phil Flynn energy blast. Just call me at 800-935-6487 or email me at pflynn@alaron.com to open your account. Also get the Fox Business Network.

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Sell August crude at 13850 - �stop 14100.

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Sell July RBOB at 36200 - stop 35700.

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Buy July heating oil at 36000 - stop 35500.

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We're long July natural gas �from apprx �1240 - raise stop to 1259!!!

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Have a GREAT day!

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