Alaron Energy Comment

CHICAGO - Jul 7/08 - SNS -- Following is the energy futures comment from Alaron Trading Corp.

It's the G-8 to the rescue! Can the G-8 save the dollar and bring down oil. Well so far so good.

Oil starts out on a weak note as there is talk that the G-8 may try to do something, anything to support the dollar. Of course that might not be the only reason oil is down.

It looks like tropical storm Bertha is going to stay way clear of any oil facilities. Not that that anyone really thought Bertha was going to be a threat but why chance it going into a holiday weekend. With earnings about to come out in stocks the market will work hard to determine what toll oil is taking on the economy? In the background we will hear noise about evil speculators driving the price of oil.

Oil inventories may drive us more than evil speculators so look for crude to be down by 2 million barrels look for gas to fall buy 1 million barrels and distillates to rise buy 1.5 million barrels. Look for refinery runs to stay steady.

Will wind power just start to blow over? Maybe too much wind is a bad thing. An article in the Dallas News seems to suggest that the largest user of wind power in the United States seems to be having second thoughts about wind and the billions of dollars it will take to bring the power to the people. The Dallas news says that, “sure, wind is among the cheapest, cleanest fuels generating the power Texans increasingly demand. But as officials brag about the state's status as the No. 1 wind producer in the country, they are also debating how much is too much. Building the transition lines to bring wind power from rural West Texas to population zones will cost billions. And even with enough transmission lines, the on-again, off again nature of wind can leave coal and natural gas fired plants scrambling to fill in the gaps. The Dallas news says that, “The wind blows hardest before the sun comes up, when people aren't using much power. It tends to die down during the afternoon-especially in the summer-when people demand more juice.� A must read.

Commodities are king! Are you taking advantage of these moves? Get ready to open your trading account! Just call me at 800-935-6487 email me at pflynn@alaron.com also check me on the Fox Business Network.

We're long  August crude oil from apprx  14300 -  stop 13700.

Buy August RBOB at 34700 -  stop 34400.

Buy August  heating oil at  39000 - stop 38700.

Buy August natural gas at 1270 -  stop 1202.

Have a GREAT day!

Phil Flynn

Alaron Research Team

800.563.9510

pflynn@alaron.com

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