2011-06-23rd (Thurs)

At the end of the previous trading session I had the following positions;
Long 25 contracts US WTI Crude Aug 2011 with ACB of 98.6768
Long 35 contracts US Wheat Sep 2011 with ACB of 763.56

In today's trading session markets fell in reaction to Bernanke's indication the Fed will cease additional monetary stimulus after the current $600 billion program runs out at the end of June.

The Labor Department said applications for unemployment benefits rose by 9,000 to 429,000 last week, the biggest rise in a month.  That means more people are seeking help after being laid off from their jobs.

In the worst possible timing, border line political plunder, or just get all the bad news out already category;

The uprising in Libya has resulted in a loss of about 1.5 million barrels of oil a day, and the International Energy Agency said roughly 132 million barrels of Libyan light, sweet crude had been removed from the world market as of May.

After the unrest in Lybia started in February, talks started in April, and took until today the International Energy Agency consisting of 28 total countries including the USA to announce they will release and sell 60 million barrels of crude from emergency stocks.
http://www.iea.org/country/index.asp

To give the reader some perspective;

Daily global oil demand is approximately 89 million barrels Brent Crude Oil (Not WTI).

The amount of Brent Crude Oil (Not WTI) to be released, 2 million barrels per day for the next 30 days, represents 2.2% of daily global oil demand.

The total release of 60 million barrels Brent Crude Oil (Not WTI) covers only what the world uses roughly every 16 hours.

Half of the release, or 30 million barrels Brent Crude Oil (Not WTI) will come from the US Strategic Petroleum Reserve (SPR).

30 million barrels Brent Crude Oil (Not WTI) represents less than two days' worth of US domestic oil consumption and about three days of oil imports.

Bernard Baumohl, chief global economist at the Economic Outlook Group, said Brent Crude Oil (Not WTI) would have to drop below $80 a barrel to have much economic impact on the economy.  He said he doesn't think the 60 million barrels Brent Crude Oil (Not WTI) is enough to do that.

Article - "US and others plan biggest release of reserve oil - US and other nations will free 60 million barrels of oil, largest strategic release ever"
http://finance.yahoo.com/news/US-and-others-plan-biggest-apf-472871588.html;_ylt=AsPutkwbaje2b9BVTHiQW5.xba9_;_ylu=X3oDMTFkNHRtaW10BHBvcwM2BHNlYwNuZXdzSHViQXJ0aWNsZUxpc3QEc2xrA3VzYW5kb3RoZXJzcA--?x=0

Article - "Obama releasing 30M barrels from US oil reserves - Obama releasing 30M barrels from US oil reserve to offset Mideast turmoil, high gas prices"
http://finance.yahoo.com/news/Obama-releasing-30M-barrels-apf-2233806614.html;_ylt=Asp8LgU56y.VdniECG0w16uxba9_;_ylu=X3oDMTFlYWlrZXBxBHBvcwMyMgRzZWMDbmV3c0h1YkFydGljbGVMaXN0BHNsawNvYmFtYXJlbGVhc2k-?x=0

Article - "Unemployment applications jump by most in a month - Unemployment applications rise by most in 4 weeks, signaling more weakness in the job market"
http://finance.yahoo.com/news/Unemployment-applications-apf-4213009815.html;_ylt=Ar7pYT0pmtjG5wRHhx70xPuxba9_;_ylu=X3oDMTFkYmd0ZjEwBHBvcwM0BHNlYwNuZXdzSHViQXJ0aWNsZUxpc3QEc2xrA3VuZW1wbG95bWVudA--?x=0

Article - "Greece presses banks, low-earners in debt crisis - Greece presses banks, low-earners in debt crisis; police hold protest rally"
http://finance.yahoo.com/news/Greece-presses-banks-apf-483067228.html;_ylt=AnOX7rLr0PMybADlBbZfC6mxba9_;_ylu=X3oDMTFlazVpa21uBHBvcwMxMgRzZWMDbmV3c0h1YkFydGljbGVMaXN0BHNsawNncmVlY2VwcmVzc2U-?x=0

Article - "Cameron says UK should stay out of any Greek deal - Cameron insists Britain should not provide any financial aid to Greece"
http://finance.yahoo.com/news/Cameron-says-UK-should-stay-apf-3825609470.html;_ylt=Ar1wo8LhrbQSExXLBwxCr26xba9_;_ylu=X3oDMTFlczVkZnRkBHBvcwM5MARzZWMDbmV3c0h1YkFydGljbGVMaXN0BHNsawNjYW1lcm9uc2F5c3U-?x=0

I was severely tested today when the markets opened and prices fell against me, I lightened my position slightly.

Sell 5 contracts US WTI Crude Sep 2011 at 90.055 (2011-06-23, 10:02 am EST)

Currently I have the following positions;
Long 20 contracts US WTI Crude Aug 2011 with ACB of 98.6768
Long 35 contracts US Wheat Sep 2011 with ACB of 763.56

US WTI Crude Aug 2011 is currently 91.905 (2011-06-23, 23:18 pm EST)
US Wheat Sep 2011 is currently 673.75 (2011-06-23, 23:18 pm EST)

Our first line of credit was activated on 2011-06-16th (Thurs) to maintain our positions.

Total equity is 20% of June 1st, and a major decrease from previous.  We gave back all the gains we made last month.

Stay Tuned,

Jeff
(2011-06-23, 23:19 pm EST)