Saudi Arabian Oil Minister Says Crude Oil Prices are too High

Crude oil fell for a fifth day as Saudi Arabian Oil Minister Ali al-Naimi said prices are too high and the euro weakened against the dollar after the weekend’s election results. Crude oil prices are “still a little bit high,” al-Naimi said in Tokyo today before board meetings of Saudi Arabian Oil Co., of which he is chairman.

The euro fell for a seventh day as Greek politicians struggled to form a new government and on the possibility of a policy conflict between Germany and France, which elected Socialist Francois Hollande president. “The Saudis are still coming out and saying prices are too high, and they probably will continue to ramp up production,” said Phil Streible, a Chicago based commodities broker at RJO Futures. “The euro is getting everything down.”

Crude for June delivery fell 89 cents, or 0.9 percent, to $97.05 a barrel at 9:18 a.m. on the New York Mercantile Exchange. The five day losing streak is the longest since Feb. 2. Prices have fallen 12 percent since Feb. 24, when they reached the 2012 high of $109.77.

Brent oil for June settlement dropped 98 cents, or 0.9 percent, to $112.18 a barrel on the London based ICE Futures Europe exchange.....Read the entire article.

6 Things Successful Trader Have in Common

Phil Flynn: Giving OPEC Too Much Credit

When Ali Naimi speaks the markets listen but should they? Some gave credit to yesterday’s big rally in oil to comments by the “Alan Greenspan” of oil, the de facto leader of the OPEC cartel, Ali Naimi, who said that oil was in a comfortable range between $70 and $90. Some took that to mean that Mr. Naimi was hoping for 90 barrel oil. Or could it be that oil rallied because China’s data was stronger than expected. Or could it have been the the Federal Reserve and their major money printing binge. The truth is that oil popped on the data and gained more strength on the reports of the bomb going off in Athens, Greece.

OPEC is not the driving force in the oil market. In fact the man that the oil market listens to is Ben Bernanke and not Ali. Mr. Naimi's impact, like Greenspan's, is in the past not the present. Oil of course also listens to the Forex market. Overnight the Aussies shook up the global markets by a “pre-emptive” 25 basis point rate hike 4.75% its first rate increase since May. Natural gas prices lost ground. The main reason was that oil was higher.

The natural gas versus crude spread was very evident. Of course the fact that we have a global glut of gas may have weighed on market sentiment as well. Reuter’s News reported that according to the International Energy Agency the globe has a natural gas glut that could last for a decade. Reuters says that, “An existing natural gas glut could run for as much as 10 years, Nobuo Tanaka, executive director of the International Energy Agency (IEA) said on Monday.

”If we assume the current level, the gas glut may go on for as long as 10 years, but there is uncertainty about how strong demand will be from China, so it could be much shorter," Tanaka told reporters in Singapore, where he is attending an industry meeting. Qatar, the world's largest exporter of liquefied natural gas (LNG), said earlier it expected the global gas glut to end......Read the entire article.


How To Trade Market Sentiment

Share

Crude Oil Decline as Dollar Strengthens Against the Euro and Yen

Crude oil fell for a second day after the dollar strengthened, reducing the appeal of commodities as an investment, and as Saudi Arabia signaled that OPEC may leave oil production quotas unchanged. The dollar yesterday climbed from an eight month low against the euro and a 15 year low to the yen. The currency had retreated earlier on speculation the Federal Reserve will signal it’s willing to buy more government debt to spur economic growth.

OPEC may leave oil production quotas unchanged when it meets this week after Saudi Arabian Oil Minister Ali al-Naimi described the market as “very well balanced,” and said an oil price between $70 and $80 a barrel is “ideal.” “The dollar is so heavily sold at the moment, creating the opportunity for a bit of strength in the dollar and softness in oil,” Mark Pervan, head of commodity research at Australia & New Zealand Banking Group Ltd. in Melbourne, said by phone. “You would be leaning toward a softer oil price this week.”

Crude for November delivery fell as much as 66 cents, or 0.8 percent, to $81.55 a barrel on the New York Mercantile Exchange, and was at $81.62 at 12:14 p.m. Singapore time. Yesterday, prices lost 0.5 percent to $82.21. Futures last week recorded a third consecutive weekly gain, the longest stretch since June. Brent crude for November settlement declined as much as 0.8 percent to $83.07 a barrel. The contract slipped 31 cents, or 0.4 percent, yesterday to $83.72 on the ICE Futures Europe exchange in London......Read the entire article.


A Good Trading Education = a Good Trader = Good Profits.....Watch INO TV

Share

Crude Oil Rises the Most in More Than a Month as Dollar Tumbles

Crude oil rose the most in more than a month after the dollar declined, spurring demand for commodities, and as OPEC ministers gathered in Vienna to decide on production levels. Oil topped $71 a barrel and gold climbed above $1,000 an ounce as the U.S. currency dropped to the lowest level this year against the euro and on speculation inflation will accelerate. The oil market is in “good shape,” Saudi Arabian Oil Minister Ali al-Naimi said, signaling the group is unlikely to change output quotas.“Today’s move in oil is all about the dollar and inflation concerns,” said John Kilduff, senior vice president of energy at MF Global in New York.....Read the entire article