CAMERON HANOVER

[DAILY PETROSPECTIVE] November 11, 2010

Energy Prices Settlements

Heating Oil Crude Oil

Month High Low Settle Change Volume Month High Low Settle Change Volume
DEC 245.71 242.41 242.66 -1.53 37776 DEC 88.63 87.54 87.81 0.00 305094
JAN 247.20 244.21 244.33 -1.47 24778 JAN 89.10 88.01 88.28 -0.01 154744
FEB 247.42 245.01 245.03 -1.34 12526 FEB 89.44 88.44 88.69 0.01 61986
MAR 247.25 245.14 245.11 -1.15 5403 MAR 89.76 88.81 89.07 0.02 37150
APR 246.17 243.82 243.99 -1.05 2370 APR 90.00 89.10 89.39 0.01 16668
MAY 245.39 243.77 243.39 -0.97 2401 MAY 90.26 89.52 89.69 0.02 11398
JUN 244.81 243.36 243.39 -0.78 4675 JUN 90.47 89.60 89.92 0.03 22479
JUL 244.93 244.92 244.32 -0.69 299 JUL 90.53 89.92 90.12 0.03 5814
AUG 245.83 245.83 245.44 -0.59 312 AUG 90.63 90.15 90.31 0.04 2940
SEP 247.75 247.00 246.99 -0.47 173 SEP 90.93 90.36 90.50 0.06 1764
OCT 249.20 248.55 248.80 -0.40 145 OCT 90.99 90.45 90.68 0.07 2693
NOV --- --- 250.73 -0.35 209 NOV 91.13 90.72 90.87 0.09 3642

Unleaded Gasoline Natural Gas

Month High Low Settle Change Volume Month High Low Settle Change Volume
DEC 225.44 222.90 223.57 -0.05 58623 DEC 4.125 3.917 3.927 -0.119 122607
JAN 223.20 220.88 221.45 -0.34 47936 JAN 4.321 4.108 4.111 -0.128 80149
FEB 224.25 222.26 222.42 -0.56 18891 FEB 4.329 4.129 4.131 -0.120 22972
MAR 225.53 223.57 224.11 -0.57 11088 MAR 4.293 4.104 4.107 -0.112 22690
APR 236.25 235.08 235.66 -0.57 6286 APR 4.255 4.088 4.091 -0.101 19077
MAY 238.32 236.19 236.75 -0.54 2697 MAY 4.291 4.126 4.129 -0.096 6574
JUN 238.19 236.86 237.37 -0.50 2218 JUN 4.337 4.178 4.180 -0.093 1888
JUL 236.80 236.60 237.29 -0.42 154 JUL 4.344 4.241 4.243 -0.090 1080
AUG --- --- 236.99 -0.28 0 AUG 4.348 4.292 4.290 -0.091 1098
SEP --- --- 236.08 -0.21 0 SEP 4.452 4.303 4.305 -0.091 1187
OCT 227.20 226.85 226.78 -0.05 89 OCT 4.486 4.378 4.383 -0.088 6813
NOV --- --- 225.98 0.04 0 NOV 4.685 4.611 4.613 -0.078 2382

Early Evening Review for Thursday

Oil prices were mixed on Thursday as traders took a brief time-
out from pushing quotes higher after crude oil and gasoline
joined heating oil with decisive technical breakouts to the upside.
All three major oil contracts are in clear trends higher, with or
without help from currencies or equities.
Crude oil prices ended the day in fractionally lower territory,
along with heating oil, while gasoline prices ended slightly higher
on the day. Traders were impressed by early news from China,
which showed refinery throughput at a new record high. Trading
volume was on the light side on Thursday, with a number of
businesses closed for Veterans’ Day.
www.pureenergystore.com Research: 203.801.0771
Page | 1 Sales: 203.504.2786
www.cameronhanover.com Powered by FMX | Connect
CAMERON HANOVER
[DAILY PETROSPECTIVE] November 11, 2010
Veterans’ Day is commemorated in the US and UK on the anniversary of the armistice that ended
World War I. The expression, “The 11th hour” comes from that armistice, which took effect on the 11th
hour of the 11th day of the 11th month, in 1918, after millions had been killed, maimed, wounded and
displaced. It is a suitable day
for remembering the price so
many pay in the service of
their countries, specifically for
our country.
Many markets were open
despite the day, but few were
traded as broadly or deeply as
on other days. The US dollar
had a very strong day, and that
worked as a stiff headwind
that kept oil prices from
advancing as briskly as they
might otherwise have done.
The dollar found support on
Thursday night a little after 9
PM and it advanced through
the night and morning and continued higher on Thursday afternoon.
Oil prices have been supported recently by strong DOE numbers that suggest that oil inventories
have peaked while oil demand is staging a comeback. On Wednesday, Goldman Sachs predicted that oil
prices will move substantially higher, and on Thursday Opec revised its global demand figures 190,000
bpd higher for 2010 and 120,000 bpd higher for 2011. After powerful technical breakouts in crude oil,
heating oil and gasoline prices over the last four or five days, the oil complex now has fundamental and
technical support to move higher.
Heating oil prices dipped on Thursday, while crude oil and gasoline prices held remarkably steady,
after meteorologists revised temperature forecasts over the longer term towards milder readings.
Temperatures have been very cold recently, and the assumption has been that this could be a long, cold
winter. Thursday’s projection was for a less severe season ahead.
With distillate four-week demand up 16% against year-ago levels, and with inventories now below
levels seen in 2009, any decline is likely to be short-lived. Prices were overbought and overextended
going into Thursday’s session, so it may just have been time for a correction. The fact that the dollar
was as strong as it was (and recently has been) certainly helped to keep investor buying interest on the
sidelines. But that buying is certain to return on the next bout of weakness in the US currency.
The DJIA was also lower on Thursday, dropping 73.94 to finish at 11,283.10. Analysts on CNBC
suggested that the stock market might have gotten ahead of itself, earnings and the economy in the last
week, and there were signs of profit-taking before the end-of-year holidays begin. Here, as well,
though, the trend is higher and once buying warms up again, it will bring in another element of buying
that will stretch prices in the oil complex (on the upside).
Oil prices are trending higher and the frightening fact is that prices have not yet been boosted by
everything that can be bullish in this market at once. Once it has all its cylinders firing (with the euro
and equities advancing), this will be a tough market to short.

Research: 203.801.0771
Page | 2 Sales: 203.504.2786
www.cameronhanover.com Powered by FMX | Connect
CAMERON HANOVER
[DAILY PETROSPECTIVE] November 11, 2010

Technical Views

Crude oil prices were steady on Thursday despite lower stock market quotes and another strong dollar session.

The DJIA ended the day down 73.94 to finish at 11,283.10. Despite that, the DJIA still has support below the market and prices
have returned to their breakout point from last week.

Research: 203.801.0771
Page | 3 Sales: 203.504.2786
www.cameronhanover.com Powered by FMX | Connect