In an article by Jad Mouawad, of the International Herald Tribune, PIRA Energy Group's, Larry Golstein refers to the relationship between the crude oil market and the hurricane season as "A new version of the butterfly effect.” I couldn't have thought of a better description. A storm that damages oil platforms, rigs and pipelines will ultimately impact the crude oil industry, the spending patterns of consumers, possible crude production employment, and crude oil prices around the world.
If we use hurricane Katrina and Rita as examples, we can see the ripple effect. The storm destroyed 113 of the Gulf's 4,000 oil and gas platforms and damaged 52 others. There was a shut down of oil and gas production from the outer continental shelf in the Gulf Coast, a source of over 25% of total domestic crude production, as stated in an article by the Congressional Research Reports For The People. There was a delay in natural gas production; a huge hit considering that the Gulf supplies 24% of domestic natural gas. There was also concern that the Gulf ports were damaged causing problems for the shipping industry; since the Gulf's ports are trading points for over 20% of cargo tonnage in the US. The Strategic Petroleum Reserve took a small hit when it released barrels to alleviate the domestic fuel price crisis. SUPPLY AND DEMAND!
In cents and dollars, CnnMoney.com released information on September 19th of 2005 reporting a ≈7% jump in crude oil prices, ≈11% increase in home heating oil prices, ≈13% spike in natural gas prices, and a ≈14.4% rise in unleaded gas prices.
Natural occurrences like these can not be foreseen, however the effects will never be forgotten for some investors.
Of course no system can predict natural occurrences. However, technology such as MarketClub can spot changes in trending patterns, price, and moving averages and may give you a head start in capitalizing on moves that are in result of a natural event.
If you are a member, keep an eye on the triangles for the crude oil. Remember to use the weekly for trend and the daily for timing.
If you are not a member, call me and I will analyze one symbol of your choice... in the futures, equities or forex markets. You can also start your 30-day money back guarantee and see how the triangles can work for you on equities, futures and forex markets.
You guys are amazing.
I really got interested in trading Futures especial heating oil and Crude oil. So, I got a demo account to trade futures using Market club triangles. The system gave a buy signal on Natural gas (weekly sign on HEATING OIL Oct 2007 on 08/29 @ 2.046) and look where it is today!!! The same goes for Crude oil (weekly signal on CRUDE OIL Oct 2007 on 08/31 @ 74.25) do the Math!!! I am going to open my real future account next week!