Crude Oil Falls for Third Day on Concern Slowing Economic Recovery to Cut Demand

Crude oil fell for a third day in New York on speculation that the U.S. economic recovery is slowing, reducing fuel demand in the world’s biggest energy consuming country. Oil slipped as much as 1.6 percent and equities tumbled after an index of preliminary consumer sentiment declined to the lowest level since 2009. Prices retreated yesterday as manufacturing in New York and Pennsylvania dropped, part of a nationwide decline in factory production of 0.4 percent in June.

“Oil should be a lot lower than it is,” said Peter Beutel, president of trading advisory company Cameron Hanover Inc. in New Canaan, Connecticut. “We’ve had some very bearish stuff come out about the economy this week.” Crude oil for August delivery slipped 42 cents, or 0.6 percent, to $76.20 a barrel at 10:57 a.m. on the New York Mercantile Exchange. Futures are little changed this week. Brent crude oil for September settlement fell 63 cents, or 0.8 percent, to $75.46 on the London based ICE Futures Europe exchange.

Oil in New York has traded in a range of $8.29 for the past month, from $71.09 to $79.38 a barrel. “We’re stuck in a $70 to $80 range and looking for a strong signal to exit it in either direction,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “It will take evidence that the recovery is gathering momentum to move us higher, and any signs pointing to continued sluggishness and weak demand will move us lower”.....Read the entire article.

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Oil Falls for First Day in Five as China Seeks to Cool Economic Expansion

Crude oil fell for the first day in five after China, the world’s fastest growing energy consuming country, sought to cool its economic expansion. Oil dropped below $74 a barrel as the People’s Bank of China ordered banks to set aside more deposits as reserves for the second time in a month, boosting the dollar. An Energy Department report today showed a bigger than forecast increase in inventories.

“All of the markets still need every bit of stimulus the central banks can provide,” said John Kilduff, a partner at Round Earth Capital, a New York based hedge fund that focuses on food and energy commodities. “This move augurs for diminished demand and lower prices.” Crude oil for March delivery fell $1.29, or 1.7 percent, to $73.99 a barrel at the 2:30 p.m. close of floor trading on the New York Mercantile Exchange. Futures have dropped 6.8 percent this year. Oil increased for the first week in five.

China’s central bank said today it will raise banks’ reserve requirement ratio by 50 basis points. China’s policy makers aim to avert asset bubbles and restrain inflation after flooding the economy with money last year to drive a recovery from the first global recession since World War II. “This means it’s more difficult for the Chinese banks to lend, and China has been the bright spot in an otherwise unspectacular global economic recovery,” said Peter Beutel, president of trading adviser Cameron Hanover Inc. in New Canaan, Connecticut.....Read the entire article.

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Peter Beutel, President of Cameron Hanover, Talks Oil and Natural Gas Inventories

Peter Beutel, president of Cameron Hanover, talks oil and natural gas inventories as crude backs off a two week rally. Chinese cities are extending gas and electricity rationing in their coldest winter in decades. The military says a natural gas pipeline explosion at Barksdale Air Force Base in Louisiana has killed a civilian. Google tries to get into the wholesale electricity market. And Clean Skies' Tyler Suiters takes a look at how Iceland may hold some answers for the U.S. When it comes to effectively utilizing the earth's energy resources.



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Oil Rises, Snaps 9 Day Drop as U.S. Industrial Output Gains

Oil rose, snapping the longest decline since 2001, on a report that U.S. factories churned out more goods in November than anticipated, a signal that fuel demand will increase. Oil gained for the first time in 10 days as the Federal Reserve said that output at factories, mines and utilities climbed 0.8 percent last month, the fourth increase in five months. Germany’s IFO economic institute raised its 2010 outlook for growth in Europe’s biggest economy.

“The industrial production number is definitely a sign that the economy is improving, and it should lead to higher demand for oil and energy,” said Peter Beutel, president of trading adviser Cameron Hanover Inc. in New Canaan, Connecticut. Crude oil for January delivery rose $1.18, or 1.7 percent, to settle at $70.69 a barrel on the New York Mercantile Exchange. Futures have climbed 58 percent this year. Oil dropped 11 percent in the nine days ended yesterday to the lowest level since Sept. 29.....Read the entire article.

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Natural Gas Extends Gain From Seven Year Low as Economy Lifts

Natural gas advanced, extending its gain to 38 percent from a seven year low earlier this month, on speculation that a rebound in demand will reduce a surplus of the power plant and industrial fuel. Manufacturing in the New York region grew in September at the fastest pace in almost two years and U.S. retail sales jumped in August by the most in three years, economic reports today showed. Gas tumbled to $2.409 per million Btu on Sept. 4, the lowest price since March 2002, on a glut of the fuel.

“The market is starting to count in an economic recovery, which should bring with it an increase in demand,” said Peter Beutel, president of Cameron Hanover Inc., an energy consultant in New Canaan, Connecticut. Natural gas for October delivery rose 2.3 cents, or 0.7 percent, to settle at $3.32 per million British thermal units at 2:51 p.m. on the New York Mercantile Exchange after rising as high as $3.60. Prices are down 41 percent this year.....Read the entire article

Crude Oil Must Clear $73 or Face 25% Drop

Crude oil risks a decline of as much as 25 percent in the coming weeks if the market’s bulls are unable to break chart resistance above $73 a barrel after repeated attempts, according to Cameron Hanover Inc. Oil settled above $72 a barrel in the past two days, the closest test of its technical upside this month, and will sustain a rally only if prices rise above the June 30 peak, also the highest this year, said Peter Beutel, president of the New Canaan, Connecticut based trading adviser. The gains of about 25 percent made since the mid July drop to below $59 may unravel because of a failure to break resistance. "Crude needs to settle over $73.38 to initiate a new leg higher," Beutel said in an e-mail. "If we fail, we should drop all the way back to $58.20 to $59.25".....Complete Story

Oil May Test Bollinger Support Near $58

Crude oil remains in a downtrend and may slip toward its lower Bollinger Band just above $58 a barrel as traders test the resilience of technical support levels, said the head of Cameron Hanover Inc. Oil traded above $62 a barrel this week as buyers stepped in after futures, which dropped July 13 to an eight week low of $58.32, were deemed undervalued, said Peter Beutel, president of the New Canaan, Connecticut-based trading advisory firm......Complete Story

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Oil to Rise After Averting Slide: Technical Analysis

Crude oil is set to extend gains amid this week’s volatility and may reach the $76 a barrel level last traded in mid October, said the head of Cameron Hanover Inc. The market’s ability today to stay close to the psychologically important $70 a barrel mark is keeping prices from slipping into a technical downtrend channel on the daily continuation chart, said Peter Beutel, president of the New Canaan, Connecticut, trading advisory firm.....Complete Story