National Oil Well Varco Continues Shopping Spree, Crude Oil Lower After Mid Day Rally

"Louisiana Reps Urge Salazar to Authorize More Offshore Drilling"
Louisiana representatives encouraged U.S. Interior Secretary Ken Salazar to authorize more offshore drilling for oil and gas at a regional meeting held in New Orleans Wednesday. The representatives asked Salazar not to forget the importance of the oil and gas industry in the U.S. economy as a source of jobs and tax dollars....Complete Story

"National Oilwell Varco Snaps Up 2 European Service Companies"
National Oilwell Varco, Inc. has acquired ASEP Group Holding B.V. and Anson Limited.
ASEP, based in the Netherlands, develops and manufactures well service equipment, including wireline units, cranes, coiled tubing equipment, pressure control products, and automation products....Complete Story

"Energy Prices May Rise on `Slingshot' Effect After Credit Chills Drilling"
The credit crunch will keep U.S. oil and gas producers from ramping up exploration they do through drillers such as Nabors Industries Ltd., setting the stage for shortages and surging prices when demand recovers....Complete Story

"Aventine, U.S. Ethanol Producer, Files for Bankruptcy After Reporting Loss" Aventine Renewable Energy Holdings Inc., a U.S. ethanol producer that counts a unit of Citigroup Inc. among its biggest investors, sought bankruptcy protection from creditors after reporting a fourth-quarter net loss of $36.9 million on March 16....Complete Story

Crude Supplies Grow Less Than Expected

"Crude Supplies Grow Less Than Expected"
Oil prices rose Wednesday as stocks opened higher, and after a government report showed supplies of crude increased less than expected. In its weekly inventory report, the Energy Information Administration said crude stocks increased by 1.7 million barrels in the week ended April 3. Analysts expected an increase of 2.3 million barrels of crude oil, according to a consensus estimate of industry analysts....Complete Story

Crude Oil Extends Tuesday's Decline In Overnight Trading

May crude oil was lower overnight as it extends Tuesday's decline below the 20 day moving average crossing at 50.63.

Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term.

Closes below last Wednesday's low crossing at 47.26 would confirm that a short term top has been posted.

If May renews last week's rally, March's high crossing at 54.66 then January's high crossing at 58.31 are the next upside targets.

Wednesday's pivot point, our line in the sand is 49.79

First resistance is the 20 day moving average crossing at 50.63
Second resistance is last Friday's high crossing at 53.90

First support is the overnight low crossing at 47.37
Second support is last Wednesday's low crossing at 47.26

---------------------------------------------------------------------------------------


10:30 AM ET. Apr 3...US Energy Dept Oil Inventories

.....................Crude Oil Stocks (previous 359.4M)

.....................Crude Oil Stocks (Net Change) (previous +2.84M)

.....................Gasoline Stocks (previous 216.79M)

.....................Gasoline Stocks (Net Change) (previous +2.22M)

.....................Distillate Stocks (previous 144.1M)

.....................Distillate Stocks (Net Change) (previous +221K)

.....................Refinery Usage (previous 81.7%)


---------------------------------------------------------------------------------------

The June Dollar was higher due to short covering overnight as it extends Monday's rally and is trading above resistance marked by the 20 day moving average crossing at 85.53.

Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near term. Closes above the 20 day moving average crossing at 85.53 are needed to confirm that a short term low has been posted and would confirm that the c-wave of an a-b-c correction off March's low is underway.

If June renews the decline off last week's high, March's low crossing at 83.15 is the next downside target.

First resistance is the overnight high crossing at 86.13.
Second resistance is the reaction high crossing at 86.61.

First support is Monday's low crossing at 84.10.
Second support is March's low crossing at 83.14.

-------------------------------------------------------------------------------------

The June S&P 500 index was lower overnight and trading below initial support marked by the 10 day moving average crossing at 816.17 signaling that a short term top has been posted.

Stochastics and the RSI are overbought, diverging and are turning bearish signaling that a short term top might be in or is near. Closes below the 20 day moving average crossing at 797.93 are needed to confirm that a short term top has been posted.

If June extends the rally off March's low, February's high crossing at 867.50 is the next upside target.

First resistance is Monday's high crossing at 847.90.
Second resistance is February's high crossing at 867.50.

First support is the 20 day moving average crossing at 797.93.
Second support is last week's low crossing at 775.70.

The June S&P 500 Index was down 4.40 points. at 809.60 as of 5:56 AM CST. Overnight action sets the stage for a lower opening by the March S&P 500 index when the day session begins later this morning.

Crude Oil Close Lower On Tuesday, Continues Lower In After Market Trading

May crude oil closed lower on Tuesday due to profit taking as it extends Monday's decline. The low range close sets the stage for a steady to lower opening on Wednesday.

Stochastics and the RSI are turning neutral to bearish signaling that sideways to lower prices are possible near term. Closes below last Wednesday's low crossing at 47.26 would confirm that a short term top has been posted.

If May renews last week's rally, March's high crossing at 54.66 is the next upside target.

First resistance is last Friday's high crossing at 53.90.
Second resistance is March's high crossing at 54.66.

Wednesday's pivot point, our line in the sand is 49.79, we will look to go short if we open below 49.79.

First support is today's low crossing at 48.89.
Second support is last Wednesday's low crossing at 47.26.

-------------------------------------------------------------------------------------

The June Dollar closed higher on Tuesday as it extends Monday's rally. Today's close above the 10 day moving average crossing at 85.28 tempers the near term bearish outlook. The high range close sets the stage for a steady to higher opening on Wednesday.

Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near term. Closes above the 20 day moving average crossing at 85.66 would confirm that a short term low has been posted.

If June resumes last week's decline, March's low crossing at 83.14 is the next downside target.

First resistance is the 20 day moving average crossing at 85.66.
Second resistance is last Monday's high crossing at 86.61.

First support is Monday's low crossing at 84.10.
Second support is March's low crossing at 83.14.

-------------------------------------------------------------------------------------

The June S&P 500 index closed lower on Tuesday and below the 10 day moving average crossing at 815.14 signaling that a short term top has been posted. The low range close sets the stage for a steady to lower opening on Wednesday.

Stochastics and the RSI are overbought, diverging and are turning neutral to bearish hinting that a short term top might be in or is near. Closes below the 20 day moving average crossing at 793.37 are needed to confirm that a short term top has been posted.

If June extends the rally off March's low, the reaction high crossing at 867.50 is the next upside target.

First resistance is Monday's high crossing at 847.90.
Second resistance is the reaction high crossing at 867.50.

First support is today's low crossing at 812.00.
Second support is the 20 day moving average crossing at 793.37.

Oil Industry Stock Market Winners and Losers

Winners

Atlas Pipeline Partners......7.78%
Cimarex Energy..............5.06%
Edge Petroleum..............4.55%
Parallel Petroleum...........3.75%
Tesoro Petroleum............3.46%

Losers

Meridian Resource..........-8.00%
ENSCO International........-7.55%
Parker Drilling..............-7.08%
McMoRan Exploration.......-6.43%
Dawson Geophysical........-5.84%

Change based on the last 2 days of trading

Crude Oil Could Fall On Hurricane Season Estimates

"Forecasters See Lower Average for 2009 Atlantic Hurricane Season"
According to forecasters at Colorado State University, the 2009 Atlantic hurricane season is expected to show average storm activity from June 1 to Nov. 30. The forecasters cite an average of 12 storms for the active season, six of which will transform into hurricanes with two set to become intense hurricanes, which are defined by sustained winds of 111 miles per hour or more....Complete Story

Crude Oil Falls Overnight, Trading Below 20 Day Moving Average

May crude oil was lower overnight as it extends Monday's decline and is trading below the 20 day moving average crossing at 50.50.

Stochastics and the RSI are turning neutral signaling that sideways to lower prices are possible near term. Closes below last Wednesday's low crossing at 47.26 would confirm that a short term top has been posted.

If May renews last week's rally, March's high crossing at 54.66 then January's high crossing at 58.31 are the next upside targets.

First resistance is last Friday's high crossing at 53.90.
Second resistance is March's high crossing at 54.66.

First support is the overnight low crossing at 50.00.
Second support is last Wednesday's low crossing at 47.26.

---------------------------------------------------------------------------------------

The June Dollar was higher due to short covering overnight as it extends Monday's rally. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near term.

Closes above the 20 day moving average crossing at 85.66 are needed to confirm that a short term low has been posted and would signal that the c-wave of an a-b-c correction off March's low is underway.

If June renews the decline off last week's high, March's low crossing at 83.15 is the next downside target.

First resistance is the 20 day moving average crossing at 85.66.
Second resistance is the reaction high crossing at 86.61.

First support is Monday's low crossing at 84.10.
Second support is March's low crossing at 83.14.

---------------------------------------------------------------------------------------

The June S&P 500 index was lower overnight due to profit taking as it consolidates some of last week's rally. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near term.

If June extends the rally off March's low, February's high crossing at 867.50 is the next upside target. Closes below the 20 day moving average crossing at 793.60 are needed to confirm that a short term top has been posted.

First resistance is Monday's high crossing at 847.90.
Second resistance is February's high crossing at 867.50.

First support is the 10 day moving average crossing at 816.59.
Second support is the 20 day moving average crossing at 793.60.

The June S&P 500 Index was down 10.90 points. at 819.50 as of 5:50 AM CST. Overnight action sets the stage for a lower opening by the March S&P 500 index when the day session begins later this morning.

--------------------------------------------------------------------------------------

4:30 PM ET........Apr 3 API Oil Industry Report

..................Crude Stocks (Net Change) (expected +2.3M; previous +3.27M)

..................Gasoline Stocks (Net Change) (expected -700K; previous -451K)

..................Distillate Stocks (Net Change) (expected -200K; previous +1.77M)

..................Refinery Runs (expected 82.1%; previous 81.8%)

Crude Oil Looks To Open Lower On Tuesday After Today's Low Range Close

May crude oil closed lower on Monday due to profit taking as it consolidated some of last week's rally. The low range close sets the stage for a steady to lower opening on Tuesday.

Stochastics and the RSI are turning bullish signaling that sideways to higher prices are possible near term.

If May extends last week's rally, March's high crossing at 54.66 is the next upside target. Closes below last Wednesday's low crossing at 47.26 would confirm that a short term top has been posted.

First resistance is last Friday's high crossing at 53.90.
Second resistance is March's high crossing at 54.66.

First support is the 20 day moving average crossing at 50.35.
Second support is last Wednesday's low crossing at 47.26.

---------------------------------------------------------------------------------------

The June Dollar posted a key reversal up on Monday as it consolidated some of last week's decline but remains below the 10 day moving average crossing at 85.15. The high range close sets the stage for a steady to higher opening on Tuesday.

Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term.

If June extends last week's decline, March's low crossing at 83.14 is the next downside target. Closes above the 20 day moving average crossing at 85.85 would confirm that a short term low has been posted.

First resistance is the 20 day moving average crossing at 85.85.
Second resistance is last Monday's high crossing at 86.61.

First support is today's low crossing at 84.10.
Second support is March's low crossing at 83.14.

Crude Oil Declines As Stocks Fall

"Crude Oil Falls for a Second Day as U.S. Equities Decline"
Crude oil fell for a second day in New York as U.S. stocks declined on speculation that bank loan losses will increase. Oil fell as much as 4.2 percent after Mike Mayo, analyst at Calyon Securities, advised selling bank shares and International Business Machines Corp.’s purchase of Sun....Complete Story

"Venezuela to Develop Iran's Oil Fields"
Venezuela would participate in developing Iran's oil fields, according to a report released by Iran's Press TV website on Sunday. Venezuelan state oil company, Petroleos de Venezuela SA (PDVSA), signed a memorandum of understanding (MoU) to develop "17 small oil fields in Iran," the report said....omplete Story

"Oil Prices Slide In Line With Stock Markets"
Oil prices dropped more than a dollar on Monday after earlier bouncing above 54 dollars per barrel in London, as traders tracked fresh falls on global stock markets.
In London trade on Monday, Brent North Sea crude for delivery in May dived 1.16....Complete Story

Crude Oil Opens Sharply Lower Monday Morning

May crude oil was higher overnight, above the 10 day moving average crossing at 51.81 but has opened sharply lower this morning.

Stochastics and the RSI have turned bullish signaling that sideways to higher prices are possible near term. Near term is the key here, we still see crude falling back to the $45 dollar area.

If May extends last week's rally, March's high crossing at 54.66 then January's high crossing at 58.31 are the next upside targets.

Closes below last Wednesday's low crossing at 47.26 would confirm that a short term top has been posted.

First resistance is last Friday's high crossing at 53.90.
Second resistance is March's high crossing at 54.66.

First support is the 10 day moving average crossing at 51.81.
Second support is the 20 day moving average crossing at 50.45.

-------------------------------------------------------------------------------------

The June Dollar was steady to slightly lower overnight as it extends last Thursday's decline below the 10 day moving average crossing at 85.09. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term.

If June extends the decline off last week's high, March's low crossing at 83.15 is the next downside target. Closes above the 20 day moving average crossing at 85.82 are needed to confirm that a short term low has been posted.

First resistance is the 10 day moving average crossing at 85.09.
Second resistance is the 20 day moving average crossing at 85.82.

First support is the overnight low crossing at 84.10.
Second support is March's low crossing at 83.14.

Where Is Crude Oil Headed This Week, And Beyond

What an amazing rally the bulls have enjoyed, but it is not rocket science to understand that just like the equity markets oil is more likely to retrace back to $45 than it is to continue up to $65 from here. Look for crude to pull back to the shaded area in the not to distant future.....

Drilling For Oil In Illinois?

"Indigo-Energy Completes Drilling Oil, Gas Wells in Illinois Basin"
Indigo-Energy, ticker IDGG, has completed the drilling of four wells in the Illinois Basin. The company revealed its plans to commence drilling in this region in December of 2008 and is announcing today the completion of this project.....Complete Story

Crude Oil Closes Lower On Unemployment Concerns

"Oil Drops On Concern U.S. Unemployment Will Erode Fuel Demand"
Crude oil dropped after a report showed the U.S. jobless rate at a 25-year high, adding to concern fuel demand will slide further. Oil fell as much as 3.1 percent after the Labor Department said the economy lost more than 650,000 jobs for a fourth consecutive month. Total daily fuel demand averaged over the past four weeks reached the lowest since October, the Energy Department said April 1.....Complete Story

Crude Oil Higher Overnight, Falling At Friday's Open

May crude oil was higher overnight as it extends Thursday's rally above the 10 day moving average crossing at 51.95.

Stochastics and the RSI are turning bullish signaling that sideways to higher prices are possible near term.

If May extends this week's rally, the reaction high crossing at 54.66 then January's high crossing at 58.31 are the next downside targets.

Closes below Wednesday's low crossing at 47.26 would confirm that a short term top has been posted.

First resistance is the overnight high crossing at 53.90.
Second resistance is March's high crossing at 54.66.

First support is the 20 day moving average crossing at 50.23.
Second support is Wednesday's low crossing at 47.26.

-------------------------------------------------------------------------------------

The June Dollar was steady to slightly lower overnight as it extends Thursday's decline below the 10 day moving average crossing at 85.05.

Stochastics and the RSI are turning neutral to bearish signaling that sideways to lower prices are possible near term.

Multiple closes below the 10 day moving average crossing at 85.05 would temper the near term friendly outlook in the market.

Closes above Monday's high crossing at 86.61 are needed to confirm that a short-term low has been posted.

First resistance is the 20 day moving average crossing at 86.09.
Second resistance is Monday's high crossing at 86.61.

First support is Thursday's low crossing at 84.46.
Second support is March's low crossing at 83.14.

Crude Oil Stock Market Winners and Losers

Winners

Atlas Pipeline Partners, L.P....+16.07%
FX Energy.......................+14.39%
Meridian Resource................+9.52%
Stone Energy.....................+7.81%
Parallel Petroleum...............+7.03%

Losers

Energy Partners..................-16.67%
Edge Petroleum...................-10.53%
Syntroleum........................-8.22%
Brigham Exploration...............-5.79%
McMoRan Exploration...............-2.77%

Changes based on the last 2 days of trading

Crude Oil Closes Higher On Falling Dollar and Stronger Equities Market

May crude oil closed up $4.15 at $52.54 a barrel today. Prices closed nearer the session high today on short covering and fresh speculative buying interest. A stronger U.S. stock market and optimism in the wake of the G-20 meeting in London boosted crude today. A sharply lower U.S. dollar also aided crude today. Bulls have regained upside near term technical momentum.

The June U.S. dollar index closed down 109 points at 84.87 today. Prices closed nearer the session low today. Bulls faded today. Bulls' next upside price objective is to close prices above solid technical resistance at this week's high of 86.61.

Crude Oil Settles Higher At One Week High Above $52 Barrel

Crude oil futures zoomed back above $50 a barrel Thursday as traders responded to hopes demand will firm up if the world economy does.

Light, sweet crude for May delivery settled at $52.64, up $4.25 or 8.8%, a barrel on the New York Mercantile Exchange. Brent crude on the ICE Futures exchange settled $4.31 higher at $52.75 a barrel.

The Nymex close was the highest in a week. Oil started the day strongly in sympathy with rising world stock markets and was further fueled by....Complete Story

Crude Oil Surges!

"Crude Oil Surges on Optimism That Worst of Global Economic Crisis Is Over"
Crude oil rose the most in three weeks as leaders of the Group of 20 nations meeting in London agreed on measures to fight the global recession. Oil surged after the G-20 said it will implement new rules on compensation and bonuses, expand controls on hedge funds and move to clean up toxic assets....Your keyword

Crude Oil Extends This Week's Decline

May crude oil closed lower on Wednesday and below the 20 day moving average crossing at 49.60 as it extends this week's decline.

The mid range close sets the stage for a steady opening on Thursday.

Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term.

If May extends this week's decline, the reaction low crossing at 43.74 is the next downside target.

Closes above the 10 day moving average crossing at 51.77 would temper the near term bearish outlook.

First resistance is the 20 day moving average crossing at 49.60.
Second resistance is the 10 day moving average crossing at 51.77.

First support is today's low crossing at 47.26.
Second support is the reaction low crossing at 43.74.

-------------------------------------------------------------------------------------

The June Dollar closed higher on Wednesday due to short covering as it consolidates some of Tuesday's decline. The mid range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near term.

If June extends this week's rally, the 20 day moving average crossing at 86.55 is the next upside target. Closes above the 20 day moving average crossing at 86.55 would confirm that a short term low has been posted.

Closes below the weekly uptrend line crossing near 83.70 would confirm that a major top in the Dollar has been posted while opening the door for a larger degree decline this spring.

First resistance is the 20 day moving average crossing at 86.55.
Second resistance is Monday's high crossing at 86.61.

First support is the 10 day moving average crossing at 84.89.
Second support is the reaction low crossing at 83.14.

Crude Oil Moving Lower, Below 20 Day Moving Average

May crude oil was lower overnight as it consolidates below the 20 day moving average crossing at 49.61.

Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term.

If May extends this week's decline, the reaction low crossing at 43.74 is the next downside target.

Closes above the 10 day moving average crossing at 51.78 are needed to confirm that a short term low has been posted.

First resistance is the 20 day moving average crossing at 49.61.
Second resistance is the 10 day moving average crossing at 51.78.

First support is Tuesday's low crossing at 47.77.
Second support is the reaction low crossing at 44.72.

----------------------------------------------------------------------------------------

And because the crude oil/dollar trade is on........
The June Dollar was higher overnight due to short covering as it consolidates below the 20 day moving average crossing at 86.55. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near term.

Closes above the 20 day moving average crossing at 86.55 would confirm that a short term low has been posted.

Closes below the 10 day moving average crossing at 84.90 would temper the near term friendly outlook in the market.

First resistance is the 20 day moving average crossing at 86.55.
Second resistance is Monday's high crossing at 86.61.

First support is the 10 day moving average crossing at 84.90.
Second support is March's low crossing at 83.14.

10:30 AM ET. Mar 27 US Energy Dept Oil Inventories

....................Crude Oil Stocks (previous 356.5M)

....................Crude Oil Stocks (Net Change) (expected +2.6M; previous +3.3M)

....................Gasoline Stocks (previous 214.5M)

....................Gasoline Stocks (Net Change) (expected -1.1M; previous -1.14M)

....................Distillate Stocks (previous 143.9M)

....................Distillate Stocks (Net Change) (expected -500K; previous -1.58M)

....................Refinery Usage (expected 82.2%; previous 82%)