IEA Cuts Demand Forecast and Saudi Arabia Doubles Spare Capacity

"Big Oil Leaders Bet on Long Term Energy Growth"
Touting an optimistic message, some Big Oil executives insist that long-term growth in energy demand remains unchanged....Complete Story

"Nigerian Oil Workers Mull Full Scale, Nationwide Strike"
Two main oil workers' unions are insisting on a full scale, nationwide strike against insecurity in the Niger Delta....Complete Story

"IEA Cuts 2009 Oil Demand Forecast on Recession, Sees 1 Million-Barrel Drop"
The International Energy Agency cut its global oil demand forecast for 2009, projecting consumption will decline by 1 million barrels a day as the worldwide recession deepens, the biggest drop since 1982....Complete Story

"Saudi Arabia to More Than Double Spare Capacity by Mid-Year"
Al-Naimi Says Saudi Arabia, the world’s largest oil exporter, will more than double its spare capacity by the middle of the year to 4.5 million barrels a day as it brings....Complete Story

Crude Oil Breaks Through $38 Support

March crude oil was slightly higher overnight due to short covering as it consolidates some of Tuesday's decline but remains below broken support marked by December's low crossing at $38.00.

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

If March extends the decline, psychological support crossing at $35.00 is the next downside target.

Closes above the 20 day moving average crossing at $41.74 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 trend change has taken place.

First resistance is the 10 day moving average crossing at $40.06.

Second resistance is the 20 day moving average crossing at $41.74.

First support is Tuesday's low crossing at $37.35.

Second support is psychological support crossing at $35.00.

Crude Oil Industry Headline News

"Crude Oil Declines After IEA Reduces Global Demand Forecast"
Crude oil fell for a third day in New York after the International Energy Agency said that global demand will decline for a second year, the first back-to-back contraction since 1983. The IEA, which advises 28 nations on energy policy, cut its 2009 forecast by 1 million barrels a day on....Complete Story

"Indonesia Rejects Exxon Mobil's Natuna Gas Proposal"
Indonesia has rejected a proposal by Exxon Mobil Corp to develop the giant Natuna D-Alpha gas field, since it believes the contract held by the U.S. oil major expired in 2005....Complete Story

"Norway, China Shake Hands on Continued Cooperation in Petroleum Sector"
Norway and China have signed a strategic agreement in Beijing for enhanced cooperation in the petroleum sector....Complete Story

"Crude Oil Prices Up Slightly"
Crude oil prices rose slightly on the New York Mercantile Exchange Friday, but remain in a downward trend in part due to a storage problem, traders said....Complete Story