USO Update

Here's the last update on USO from Friday afternoon

USO is up today, the Libyan action taken by the coalition has gone well so far as should be expected. The initial destruction of command and control is usually a fairly easy task without too much risk. However, as I've stated many times, it's the longer term outcome which will drive oil higher as the operation gets more complicated including a possible insurgency which would force the coalition to make some very difficult choices. I still see nothing on the chart or in the fundamentals of the situation that would deter oil from making a new March high.

It's a bit early for 3C on this one today as the locals are still dealing with overnight retail orders.