Alaron Energy Comment

CHICAGO - Jul 1/08 - SNS -- Following is the energy futures comment from Alaron Trading Corp.

The Energy Report for Tuesday, July 1, 2008 �

Oh no, here we go again. More bull food for the bull that needs to be fed everyday. �The International Energy Agency raises more concern about their long term supply demand outlook. How do the next five years look? Well it isn't pretty. �They reported demand will fall but not fast enough and production will rise but not fast enough. The IEA says that world oil supplies look increasingly tight. �

The IEA is warning that OPEC's spare capacity will drop to negligible levels in the next five years. Isn't it at negligible levels already? And will it stay negligible because OPEC can not increase their capacity or won't because of fears of competition from alternative fuels. The IEA also says that non-OPEC supply growth will grind to a virtual halt over the next 5 years.

Still things on the demand side are bad as well. The IEA says that high prices are set to impact consumer spending patterns but demand in the developing world will keep the pressure on. The IEA also says that the current price of oil reflects the fundamentals and is not being driven by speculators and there are no signs of hoarding. Of course if we did not have speculators you would have hoarding. �

Oil backed off a bit yesterday as the Department of Energy in its EIA forecast lowered US April demand figures. Gas prices retail hit another record high of $409.5 up 1.6 cents despite the fact that demand is lousy. How bad is gas demand? Well here is an interesting fact. US gasoline exports in the month of April were up 74% from a year earlier and hit the highest level in April since 1945. Most of those exports went to Mexico. So ahead of the US driving season we are sending our petrol to Mexico. � � � � � �

Peak oil warning! Total CEO says world oil production will plateau at 95 million barrels of oil a day by 2020. Get your bike out!See me today on the Fox business network! Also call to get your free trial of Alaronenergies and get on the Phil Flynn energy blast and open your trading account by calling me at 800-935-6487. �

Short August crude from apprx 14000 stop - �14370. If stopped buy August crude at 14000 - �stop 13700. �

Buy August RBOB at 33500 - �stop 33000. �

Buy August heating oil at 37700 - stop 37400. � �

Buy August natural gas at 1260 - �stop 1200.

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Have a GREAT day!

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