Majors Drilling In Brazil Despite Low Prices, Barclays Calls For $71 Oil, Crude Oil Lower On Inventory Fears

"Crude Oil Falls On Speculation U.S. Supplies Climbed Last Week"
Crude oil fell from a five month high on speculation a government report will show that U.S. supplies climbed to the highest level in 18 years. An Energy Department report tomorrow will probably show that crude oil inventories increased 2.5 million barrels last week, according to a Bloomberg News survey. Prices surged yesterday as the Standard & Poor’s 500 Index erased its 2009 loss and pending sales of existing U.S. homes jumped. “The market keeps rising on a rather shaky foundation,” said Bill O’Grady, chief markets strategist at Confluence Investment Management in St. Louis. "You are still sitting on a lot of inventory".....Complete Story

"Foreign Oil Majors Drilling in Brazil Despite Oil Prices"
Foreign oil companies continue prospecting for crude at Brazilian concessions, including the key BMS22 block in the Santos Basin, despite a steep decline in oil prices and daunting costs. A series of high profile oil discoveries in the past few years has made Brazil one of the world's most exciting oil frontiers. Last week, state run energy giant Petroleo Brasileiro SA (PBR), or Petrobras, pumped the first crude from a Santos Basin sub salt well at the Tupi field. BMS22 is part of a cluster of promising Santos Basin blocks that have yielded several oil discoveries, including the nearby BMS11 block's Tupi the Western Hemisphere's largest oil discovery in 30 years.....Complete Story

"Oil May Break Resistance, Rise to $71.55: Technical Analysis"
Crude oil may be headed for $71.55 a barrel after breaking through $56.10 a barrel, according to Barclays Capital. Should the June crude oil contract push through the high of $56.10 a barrel reached on March 26, futures may climb past the Jan. 6 intraday high of $59.66 to $62 a barrel, Barclays Capital analysts, led by Jordan Kotick, said in a May 4 report. Oil could jump to $71.55 a barrel as traders attempt to exit the large number of short positions, or bets that prices will fall, creating a so called short squeeze, the analysts said. This is equal to the upward moves oil has made from a so called.....Complete Story