PFGBEST Energy Comment

CHICAGO - Sep 20/10 - SNS -- Following is the energy futures comment from PFGBEST Research.

Ding Dong The Well Is Dead, Finally!

By Phil Flynn

The Energy Report Monday September 20, 2010

Ding dong the well is dead, finally! The BP Macondo Well has been officially declared dead over the weekend. The Financial Times says that US authorities pronounced BP's blown-out Macondo well in the Gulf of Mexico 'effectively dead' on Sunday, 152 days after the explosion on the Deepwater Horizon drilling rig that caused the world's largest accidental offshore. The announcement ends the 5m barrel leak, which sparked fury among the US public and politicians, but may eventually be seen to have had only a marginal effect on the global oil industry.' Marginal? BP opponents of drilling will a rallying point. Yet at the same time the industry has learned a lot and will be better prepared to respond to this type of disaster in the future. So there will be some bad and good that will come from this disaster. Oil is rallying a bit on a weak dollar. Of course the main factor for oil and most other markets will be the impact from this week's FOMC meeting. If I have said it once I think I have said it a thousand times that the Fed is one of the major driver of oil prices as well as other commodities. In fact the FED should get allot more credit for stable oil prices then the boys down in the OPEC cartel? If the Fed surprises us and makes an announcement on another tranche of quantitative easing then oil could rally sharply. More than likely that won't happen but they may lay the ground work for another round of easing at the next meeting. The amount that is being talked about is one trillion. Dow Jones says that the euro has rebounded Monday but any gains are expected to be limited ahead of the Federal Reserve's next open policy committee meeting Tuesday. Although the FOMC is expected to leave interest rates unchanged, signaling that they will remain that way for an "extended period," there is still the risk the central bank will expand its quantitative-easing scheme to help secure a recovery in the U.S. economy. The euro ended last week on the slide, hit by a rise in the cost of insuring Irish sovereign debt to a new record high and fears that other fiscally weaker debtors in the euro zone are in even worse trouble. Ireland is generally seen as one of the debtors least at risk of default. But concerns about the European debt crisis subsided over the weekend after recent research on the extent of Ireland's debt problems was revealed to be incorrect. May sure you are getting the best in business news on the Fox Business Network! Also sign up for my daily energy blast as well as my daily buy and sell points on all of the major commodities...Just call me at 800-935-6487 or email me at pflynn@pfgbest.com.

PFGBEST Research Team

Phone: 800-361-6855 or 319-553-2181

DISCLAIMER: Futures and options trading involve substantial risk. The valuation of futures and options may fluctuate, and as a result, clients may lose more then their original investment. In

no event should the content of this website be construed as an express of an implied promise, guarantee or implication by of from the author(s) that you will profit or that losses can or will be

limited in any manner whatsoever. Past performance is not necessarily indicative of future results. Information provided on this website is intended solely for informative purposes and is obtained

from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. PFGBEST Research. its officers, directors, employees and brokers may in the normal course of business have positions, which may or may not agree with the opinions expressed in

this report.

Information on this page is derived from third parties and is deemed to be reliable. STAT Communications Ltd. accepts no responsibility for errors, omissions or inaccuracies in any of the material

presented on this web site. Opinions expressed on this web site are those of the respective individuals and/or institutions and do not represent the opinions of STAT Communications Ltd. and/or STAT

Publishing or its staff and/or management.