Central Valley Cooperative

Energy – slightly higher except natural gas is lower – Iran may cut oil trade to EU. March crude oil is trading $0.45 per barrel higher to $100.15 compared to $100.63 yesterday at this time. The energy complex is trading higher with a cheaper dollar and more Iranian threats. Iranian lawmakers claim they will vote on a bill on Sunday to cut Iranian oil exports to the EU immediately. This will undercut the planned EU sanctions that would gradually be enforced by July 1. The Keystone XL pipeline remains a political football and an embarrassment to the U.S. government as if 3 years is not enough time to make a decision. Canada pledges to increase oil production projects and a pipe to the Pacific Ocean continues to gain momentum. This is our loss.  The energy market continues in a sideways pattern with nether the bull or the bear really getting the advantage. Iranian news has failed to rally this market. The Fed gave us a strong start yesterday, but failed to hold this market. Crude oil pivots around the $100.00 mark. European demand is dropping fast. U.S. demand continues to be soft. Can China and the rest of Asia keep global oil demand stronger?