The energy complex trades higher in early trade as the dollar trade loses. Gas is up 6.5 cents and diesel is up 9.36 cents. Yesterday’s key feature was the Euro summit as most felt nothing would happen. Surprisingly, Germany flinched and the summit moved ahead to the formation of a new agreement. The new agreement allows for a European Stability Mechanism (ESM) to be formed to directly lend money to nations. The agreement is not done and will not be ready until early July, so there are some hurdles to clear. The market is acting as if all is fixed. I would be cautious and we often have a “buy the rumor, sell the fact” market action. Further, we have a holiday market and this could prove to be very volatile week. Inventory reports will be issued on Thursday.
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