Chevron Profits Tumble 71 pct Because of Cheap Oil

Chevron Corp. says its second quarter profit fell 71 percent as demand for crude oil and gasoline plunged. Chevron, the second largest U.S. oil company, said Friday its net income amounted to $1.75 billion, or 87 cents per share, for the three-month period that ended June 30. That compared with $5.98 billion, or $2.90 per share, in the same period last year. The company said its net income suffered from a weak U.S. dollar, amounting to $453 million in reduced earnings. That compares with an income benefit of $126 million in the same period last year. Analysts surveyed by Thomson Reuters expected earnings of 95 cents per share. Those estimates typically exclude one time items.....Your keyword

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Occidental Moves Fast, Keeps Mum on Oil Discovery

As new details emerged Thursday about Occidental Petroleum Corp.'s discovery of a large new oil field in Kern, local oilmen voiced optimism that the find could stimulate local drilling work -- including among independents hoping to strike it rich.
Oil producers anxious to learn the field's location still had little to go on, though a spokesman for Chevron, indicated late Thursday that it's in western Kern County. Chevron owns a 20 percent stake in the find. Earlier in the day, Los Angeles-based Oxy suggested that it plans to move quickly to tap the field, drilling an additional 17 wells (costing roughly $4 million apiece) this year.....Complete Story

Can you learn to trade crude oil in 90 seconds?

Profits For Oil Industry Expected to Fall Sharply

For the second straight quarter, Exxon Mobil, Royal Dutch Shell and most of the world’s largest oil companies are poised to report quarterly earnings that pale in comparison to a year ago, when results were buoyed by crude prices that topped out near $150 a barrel. The April-June results may be somewhat better than first quarter earnings, which were the lowest in several years, but declines of 50 percent or more from a year ago are likely to be the norm. That’s what happens when oil prices plunge more than 60 percent.....Complete Story


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Chevron's $27 Billion Problem

Sometime later this year a judge in the sleepy Ecuadoran town of Lago Agrio is likely to sock Chevron Corp. with as much as $27 billion in damages over pollution left over from oil drilling by Chevron's Texaco unit in the 1970s and 1980s. The funny part is, Chevron (CVX-news-people) wanted it this way. When the case was originally filed in New York in 1993, Texaco, then an independent company, argued it would be fairer to hear it in Ecuador.....Complete Story

Continued Dollar Weakness Fuels Crude Oil Rally

July crude oil was steady to higher overnight as it extends this spring's rally. Stochastics and the RSI are overbought but are neutral to bullish signaling that sideways to higher prices are possible near term.

At I am writing crude is trading well above 1st resistance and appears ready to easily trade higher but it's all about the dollar. The dollar is so oversold and any consolidation at all will cause a sharp pullback in crude oil. As long as the SP 500 rallies today crude oil day traders will be buying the dips.

If July extends this spring's rally, the 25% retracement of the 2008-2009 decline crossing at 68.49 is the next upside target. Closes below the 20 day moving average crossing at 59.87 are needed to confirm that a short term top has been posted.

Friday's pivot point, our line in the sand is 64.32

First resistance is the overnight high crossing at 66.17
Second resistance is the 25% retracement level crossing at 68.49

First support is the 10 day moving average crossing at 61.85
Second support is the 20 day moving average crossing at 59.87

Today’s Stock Market Club Trading Triangles

The June Dollar was sharply lower overnight ending a four-day correction and has broken out below the 62% retracement level of the July-March rally crossing at 79.80. Stochastics and the RSI are oversold but are neutral signaling that additional weakness is possible near term.

If June extends the decline off April's high, the 75% retracement level of the aforementioned rally crossing at 77.55 is the next downside target. Closes above the 20 day moving average crossing at 81.99 would confirm that a short term low has been posted.

First resistance is the 10 day moving average crossing at 80.74
Second resistance is the 20 day moving average crossing at 81.99

First support is the overnight low crossing at 79.58
Second support is the 75% retracement level crossing at 77.55

Today’s Stock Market Club Trading Triangles

The June S&P 500 index was higher overnight as it extends this week's rally. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near term. If June extends this week's rally, the reaction high crossing at 923.20 then this month's high crossing at 929.00 are the next upside targets.

For Friday most day trading set ups appear to be bullish. I think most traders will be looking to buy dips anywhere near the daily pivot with a target of 913.

From a broad perspective, June needs to close above 929.00 or below 875.40 to clear up near term direction in the market.

Friday's pivot point, our line in the sand is 900

First resistance is Wednesday's high crossing at 913.80
Second resistance is last Wednesday's high crossing at 923.20

First support is Tuesday's low crossing at 876.90
Second support is the reaction low crossing at 875.40

The June S&P 500 Index was up 6.60 points. at 911.70 as of 6:02 AM CST. Overnight action sets the stage for a higher opening by the June S&P 500 index when the day session begins later this morning.

Light Trading Volume Expected For May Day Holiday

June crude oil was steady to slightly lower overnight as it consolidates above resistance marked by the 10 day moving average crossing at 50.01.

The commodities markets will be effected by possible light volume on Friday due to the May Day Holiday being celebrated in much of Europe.

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 51.43 are needed to confirm that a short term low has been posted.

If June renews this month's decline, the reaction low crossing at 45.11 is the next downside target.

Friday's pivot point, our line in the sand is 51.01

First resistance is Thursday's high crossing at 51.94.
Second resistance is the reaction high crossing at 53.21.

First support is Monday's low crossing at 48.01.
Second support is last Tuesday's low crossing at 46.72.

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The June S&P 500 index was higher overnight as it extends the rally off March's low. Stochastics and the RSI are diverging but are neutral to bullish signaling that sideways to higher prices are possible near term.

That being said we see this as a swing day, a great opportunity to go short if we touch the high's of Wednesday. This market is trying to roll over for the bears.

If June extends the rally off March's low, January's high crossing at 937.00 is the next upside target. Closes below the 20 day moving average crossing at 849.26 are needed to confirm that a short term top has been posted.

Friday's pivot point, our line in the sand is 873.75

First resistance is Thursday's high crossing at 887.10.
Second resistance is January's high crossing at 937.00.

First support is the 10 day moving average crossing at 855.41.
Second support is the 20 day moving average crossing at 849.26.

The June S&P 500 Index was up 3.70 points. at 873.70 as of 5:59 AM CST. Overnight action sets the stage for a higher opening by the June S&P 500 index when the day session begins later this morning.

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The June Dollar was lower overnight as it extends this week's decline. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term.

If June extends this week's decline, March's low crossing at 83.14 is the next downside target. Closes above the 10 day moving average crossing at 85.63 would temper the near term bearish outlook in the market.

First resistance is the 20 day moving average crossing at 85.52.
Second resistance is the 10 day moving average crossing at 85.63.

First support is Thursday's low crossing at 84.03.
Second support is March's low crossing at 83.14.



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Chevron Production Rises, IEA Forcast Lowest In Five Years

"IEA Cuts Oil Demand Forecast to Lowest in Five Years"
The International Energy Agency expects global oil demand to decline by 2.4 million barrels a day this year, about the same amount that Iraq produces, as the economic slump reduces consumption to the lowest since 2004. The adviser to 28 nations cut its 2009 forecast....Complete Story

"Petrovietnam Shortlisted to Negotiate Iraq Oil Drilling Contracts"
The National Oil and Gas Group (PetroVietnam) has been short-listed to negotiate on oil drilling contracts at 11 petroleum fields in Iraq, the country's Ministry of Oil said. The list of nine investors was created from 38 firms joining the tender held on December 31, 2008, including....Complete Story

"Chevron Production Rises, Halting Two Year Decline"
Chevron Corp., the second largest U.S. oil company, said production headed for a quarterly gain for the first time since 2006 as new platforms in the Gulf of Mexico and offshore Africa began operation. Chevron pumped the equivalent of 2.645 million barrels....Complete Story

"Saudi To Deepen May Oil Supply Cuts To 2 Asia Buyers"
Saudi Arabia will unexpectedly cut oil supplies to some major Asian refiners next month, suggesting the world's top exporter may be more concerned than some of its OPEC peers about swelling crude inventories....Complete Story

Chevron To Ramp Up Large Projects, Kazakhstan Will Not Allow Downturn To Effect Their Projects

"Chevron to Buck Downturn with Major Project Developments"
Chevron says it is well positioned in 2009 with a strong balance sheet and numerous projects coming on stream. The company expects new project start ups and continued ramp ups to contribute production of 650,000 barrels per day....Complete Story

"Kashagan Production Still Scheduled for 2012"
The economic downturn will not affect the development of Kazakhstan's Kashagan oil field, said a Shell executive. First production is still scheduled for the fourth quarter 2012....Complete Story

"U.S. Lowers Forecast for 2009 Global Oil Demand as Recession Cuts Fuel Use"
The U.S. reduced its forecast for 2009 global crude oil consumption for the sixth month in a row as the economic slowdown cuts fuel purchases....Complete Story

"OPEC Needs 100% Quota Compliance Before Further Cuts, Qatar's Attiyah Says"
OPEC, supplier of about 40 percent of the world’s oil, needs full compliance with production quotas before discussing a further reduction in output, Qatar’s oil minister said....Complete Story

Oil Climbs On Speculation Of OPEC Cuts, Oil Companies Struggling To Limit Lay Offs

"Oil Climbs to Two Month High on Speculation OPEC Will Cut Output Further"
Crude oil rose to a two month high in New York on speculation the Organization of Petroleum Exporting Countries will decide to reduce output when ministers gather in Vienna on March 15....Complete Story

"Oil Industry Strives to Limit Its Layoffs"
As oil companies cut costs amid slumping energy prices, they are determined not to repeat the mistakes of the 1980s oil bust, when mass layoffs left the industry ill prepared for the eventual rebound....Complete Story

"Oil at $50 Looms Amid Prospects for More Restictions on OPEC Production"
OPEC’s record production cuts are draining the glut in world oil markets, leading traders to bet that $50 crude is two months away....Complete Story

"OPEC: Current Oil Prices Cannot Guarantee Future Market Stability"
OPEC is expected to lower production at its upcoming meeting. The OPEC Secretary General recently reported that the current excessively low oil prices cannot guarantee its long term stability in the crude market....Complete Story

Crude Closes Higher, Above The 10 Day Moving Average

April crude oil closed higher on Tuesday due to short covering as it consolidated some of Monday's decline and closed above the 10 day moving average crossing at $41.01.

The high range close sets the stage for a steady to lower opening on Wednesday.

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

Closes above last week's high crossing at $45.30 are needed to signal that a larger degree rally into March is unfolding.

Closes below February's low crossing at $37.12 would renew this year's decline while opening the door for a possible test of psychological support crossing at $35.00 later this year.

First resistance is the 20 day moving average crossing at $42.26.

Second resistance is last Thursday's high crossing at $45.30.

First support is today's low crossing at $39.44.

Second support is February's support crossing at $37.12.

Crude Oil Higher Overnight On Short Covering, Lower Prices Probable Near Term

April crude oil was higher overnight due to short covering as it consolidates some of Monday's decline but remains below the 10 day moving average crossing at $40.93.

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

If April extends Monday's decline, February's low crossing at $37.12 is the next downside target.

Closes above last week's high crossing at $45.30 are needed to confirm that a short term low has been posted.

First resistance is the 10 day moving average crossing at $40.93.

Second resistance is the 20 day moving average crossing at $42.21.

First support is the overnight low crossing at $39.44.

Second support is February's low crossing at $37.12.

4:30 PM ET. Feb 27 API Oil Industry Report

Crude Stocks (Net Change) (previous +341K)

Gasoline Stocks (Net Change) (previous -898K)

Distillate Stocks (Net Change) (previous +1.76M)

Refinery Runs (previous 81.9%)

Mexicos Oil Output Drops, Reliance Announces Plans On Purchase From Chevron

"Oil Falls for the First Time in Four Days on Signs Recession Is Deepening"
Crude oil fell for the first time in four days on concern energy demand will decline, after the U.S. economy contracted faster than anticipated....Complete Story


"Reliance Plans to Acquire Remaining Stake in Petroleum Unit From Chevron"
Reliance Industries Ltd., owner of the world’s largest refining complex, plans to acquire the remaining shares of unit Reliance Petroleum Ltd., after the stock dropped 54 percent in the past year....Complete Story

"Obama Budget Hits Oil and Gas Companies with New Fees,Taxes"
The Obama administration Thursday proposed raising at least $31.5 billion over 10 years from oil and gas companies, reflecting a repeal of tax breaks for domestic production and new charges on oil and gas production in the Gulf of Mexico....Complete Story

"Mexico's Oil Challenge Rises with New Output Drop"
Doubts are growing that Mexico can halt a four year decline in crude oil production after its January oil output slumped to a more than 13 year low, due to bureaucratic delays and technical challenges....Complete Story

Crude Oil and Gasoline Futures Jump, Chevron Delays Nigerian Projects

"Crude Oil, Gasoline Futures Jump on Signs of Stronger U.S. Demand for Fuel"
Crude oil rose more than $2 a barrel and gasoline surged to a three-month high after U.S. stockpiles of the motor fuel dropped....Complete Story

"Chevron Delays 3 Nigerian Projects, Raises Cost Estimates as Much as 103%"
Chevron Corp., the world’s fourth- largest energy company, delayed the start of production at three Nigerian projects and raised cost estimates as much as 103 percent on some of its biggest new sources of output....Complete Story

"Compromise Energy Policy Within Reach"
BP's Chief Executive, Tony Hayward, writes that a collapse in world energy demand and the fall of energy prices present a rare once in a generation opportunity to craft an innovative energy policy for the United States....Complete Story

Who Are The Winners and Losers On Wall Street?

Winners

Parker Drilling 33.59%
Meridian Resource 20.00%
Energy Partners 15.15%
Input/Output 13.79%
Pioneer Drilling 12.73%

Losers

Edge Petroleum -20.00%
Parallel Petroleum -13.42%
Daugherty Resources -7.27%
Swift Energy -5.07%
Ritchie Bros. Auctioneers -4.29%

Change based on the last 2 days of trading

Nymex Up First Time In Three Days, Exxon and Chevron Lift Broader Market

"Nymex Oil Advances for First Time in Three Days as U.S. Equities Rebound"
Crude oil rose for the first time in three days as the U.S. stock market advanced, signaling that fuel use in the world’s biggest energy consuming country may rebound....Complete Story

"Gasoline in New York Has First Gain in Three Days as Stock Futures Climb"
Gasoline futures rose for the first time in three days as U.S. stock indexes advanced after yesterday’s losses and on speculation that supplies of the motor fuel were unchanged last week....Complete Story

"ExxonMobil, Chevron Boost Broad Market"
ExxonMobil and Chevron outpaced gains in the Dow Jones Industrial Average on Tuesday as the oil giants bolstered the broad market. A rise in crude oil prices and positive earnings reports from smaller players encouraged buying....Complete Story

"38 Foreign Cos Register for 2nd Iraq Oil Bid Round"
Thirty-eight international oil companies registered at the Iraqi oil ministry to bid for the 11 groups of oil and gas fields put up for a second bidding round by Iraq at the end of last year....Complete Story

Learn How To Effectively Use Stops In This New Video

This simple trading tip can and will make a difference in your trading results in 2009.

Stops are enormously important part of a traders arsenal of trading tools. Some traders confirm that stops are the most important part of their trading armour.

So here are three ways to use stops to protect your capital and lock in profits from a trade. These three money management techniques can be used in stock, futures and forex trading.

The important rule is that you do use a real stop in the marketplace. A friend of mine joked with me that that he had never seen a “mental stop” filled electronically or in the pits.

If the market is good your stop will not be hit. If the market is bad or changing direction then you’ll want to be out of it anyway. That is why stops are so crucial to trading success.

Click Here To Watch Video

Here are the three most commonly used types of stops. Which one do you use?

(1) Dollar stop.
(2) Percentage stop.
(3) Chart stop.

If you chose (1) you’d be correct, but, you would also be correct if you had chosen 2 or 3. All three are money management stops and are used to either lock in profits or protect capital.

1) A dollar stop, is when you set a predetermined dollar amount to a trade. Let’s say you want to risk $500 on a grain trade or $750 on a stock trade. Once you get your fill back from your broker or electronically online you simply figure from your fill price where to put your stop.

Pros: Easy to implement and use.
Cons: Can place stops too close in a volatile market

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2) Percentage stop, is a very simple way for you to place a stop on a position. Here’s how it works. Let’s say your trading account is 100,000 dollars and let’s say you only want to risk 1% of your total portfolio on any one trade. You simply take a $1,000 risk which represents 1% of your over all portfolio. This can help enormously in avoiding taking BIG LOSSES. A 1% loss is easy to absorb. A 30% or 40% loss in a trade is an account killer, and should be avoided at all costs.

Pros: Easy to implement and use.
Cons: Can place stops too close.

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3) Chart stop, a chart stop is where you place a stop that is either above or below a crucial chart level. The good thing about a chart stop is that this level is often used by other traders. That can both be a good thing and a bad thing, here’s why. Using either one of our first two examples only you know where the stop is. With a chart stop, a great many traders/brokers know that is where the stops are. In an illiquid market this type of stop should not be used, as many times brokers gun for the stops. In a highly liquid and active market this is a good stop to use.

Pros: Very easy to implement and use.
Cons: Can’t be used in thinly traded markets.

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So there you have it. Now you have all three ways to manage your money and protect your profits in 2009.

Use stops…let them work for you.

Click Here To Watch Video

Crude Oil Rally May Be One And Done, Near Term Low Might Be In

March crude oil was lower overnight as it consolidates some of Thursday's rally but remains above the 10 day moving average crossing at $37.18.

Stochastics and the RSI have turned bullish hinting that a short term low might be in or is near.

Closes above the 20 day moving average crossing at $39.66 are needed to confirm that a short term low has been posted.

If March renews this year's decline, psychological support crossing at $30.00 is the next downside target.

First resistance is the 20 day moving average crossing at $39.66.

Second resistance is the reaction high crossing at $42.68.

First support is last Thursday's low crossing at $33.55.

Second support is psychological support crossing at $30.00.

Crude Oil Increases On Lower Inventory, Petrobras Next Up For Chinese Loan"

"Crude Oil Jumps After Report Shows Unexpected Decline in U.S. Inventories"
Crude oil rose more than 10 percent in New York after a U.S. government report showed an unexpected drop in inventories....Complete Story

"Petrobras Signs a $10 Billion Loan Agreement With China Development Bank"
Petroleo Brasileiro SA signed a loan agreement for $10 billion with China’s Development bank, Chief Executive Officer Jose Sergio Gabrielli said today....Complete Story

"Majority of OPEC Governors Against Cut in March"
The majority of OPEC governors are opposed to a new output reduction being decided at a scheduled conference of the group in March but may support a 1.6 million barrels a day cut later, according to a Dow Jones News report....Complete Story

"Low Oil Prices Set to Delay Chevron Project in Cambodia"
Falling oil prices are likely to delay U.S. oil giant Chevron's development of Block A near southwestern Cambodia....Complete Story

Crude Oil's Low Range Close Sets The Stage For Possible Lower Opening On Thursday

March crude oil closed lower on Wednesday and the low range close sets the stage for a steady to lower opening on Thursday.

Stochastics and the RSI are oversold but are turning bullish hinting that a short term low might be in or is near.

Closes above the 20 day moving average crossing at $40.46 are needed to confirm that a short term low has been posted.

Closes above the reaction high crossing at $48.59 are needed to confirm that a short term low has been posted.

If March renews this month's decline, psychological support crossing at $30.00 is the next downside target.

First resistance is the 10 day moving average crossing at $37.57.

Second resistance is the 20 day moving average crossing at $40.14.

First support is last Thursday's low crossing at $33.55.

Second support is psychological support crossing at $30.00.

Crude Oil Slightly Higher Overnight On Short Covering

March crude oil was steady to slightly higher overnight due to short covering as it consolidates some of Tuesday's decline.

Stochastics and the RSI are turning bullish hinting that a short term low might be in or is near.

Closes above the 20 day moving average crossing at $40.16 are needed to confirm that a short term low has been posted.

If March extends this year's decline, psychological support crossing at $30.00 is the next downside target.

First resistance is the 10 day moving average crossing at $37.61.

Second resistance is the 20 day moving average crossing at $40.16.

First support is last Thursday's low crossing at $33.55.

Second support is psychological support crossing at $30.00.


4:30 PM ET. Feb 13 API Oil Industry Report

Crude Stocks (Net Change) (previous +1.99M)

Gasoline Stocks (Net Change) (previous -2.92M)

Distillate Stocks (Net Change) (previous -853K)

Refinery Runs (previous 81.9%)