Alaron Energy Comment

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

The Energy Report for Tuesday, July 22, 2008

Dolly drizzle and fizzle. Tropical storm Dolly has put a damper on the hopes for a huge follow through sell off as the storm is a reminder that hurricane season is indeed upon us. The first storm that will go into the Gulf is causing worry and nervous trading. The storm looks like at the worst it will shut down a small amount of Mexican production but gas seems like it will be less affected. Part of that is the size of the storm and part of it is the track that it is on. Dolly dampened bearish expectations and the build up to Dolly has used and abused us and even though it's unlikely she will do lasting damage,  oil still is  rejoicing over last week's first stockpile build in weeks. We'll have renewed worry  that this storm will cause already tight supply to tighten more.

Of course some think the breakdown of the Iranian talks were a major factor in yesterday's rally. And no doubt it was a factor. But the bigger macro reason for oil selling off last week was the perception that all the bad news is out on housing. To that point, today Treasury Secretary Paulson says that the US is on the path to solving the financial crisis. If oil traders believe it   then once Dolly passes we should see a big drop again!

Short report  today but you can get more if you tune in to the Fox Business Network and see me! Also sign up for your free trial of Alaronenergies! Or just call me at 800-935-6487 or email me at pflynn@alaron.com to open your account.

Sell September crude at 13300 - stop 13600.

Buy August RBOB at 31550 -  stop 30700.

Sell August heating oil at 40100 -  stop 40300.

Buy August natural gas at 990 -  stop 970.

Phil Flynn

Alaron Research Team

800.563.9510

pflynn@alaron.com

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