Crude Oil Testing First Support At $35.18

March crude oil was lower overnight as it extends this week's decline below 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 $41.20 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 $39.26.

Second resistance is the 20 day moving average crossing at $41.20.

First support is the overnight low crossing at $35.18.

Second support is psychological support crossing at $35.00.

Crude Oil Industry Headline News For Tuesday

"U.S. Refiners, Steelworkers Reach Tentative Contract Accord, Avert Strike"
Refiners reached a tentative agreement on a new contract for about 30,000 unionized employees, averting a strike that would have affected almost two thirds of U.S. capacity to make gasoline, diesel and other fuels....Complete Story

"BP Reports Its First Quarterly Loss in Seven Years as Oil Prices Decline"
BP Plc, Europe’s second-biggest oil company, posted its first quarterly loss in seven years and predicted demand for crude will continue to fall in 2009 as the global recession deepens....Complete Story

"Iraq Extends 2nd Bidding Round of Oil Contracts"
The Iraqi Oil Ministry gave a two-week extension for foreign oil firms to send in documentation for the second round of licensing for long-term development contracts....Complete Story

"BP Says Oil Majors Could Merge with State Oil Cos"
BP Chief Executive Tony Hayward said western oil majors could merge with state owned oil companies but dismissed mergers between the majors themselves....omplete Story