Crude Oil Pares Monthly Gain as Asian Shares Decline, Dollar Rebounds

Crude oil fell in New York, trimming a second monthly gain, as Asian equities dropped and the dollar’s rebound curbed investor demand for raw materials. Crude gave up yesterday’s 0.3 percent increase as equities declined, driving the MSCI Asia Pacific Index toward its second weekly drop. Crude stockpiles in the U.S., the world’s biggest oil consuming nation, reached the highest in 17 months after surging 5 million barrels in the week ended Oct. 22, according to Energy Department data. Futures have climbed 2.2 percent this month after an 11 percent rally in September.

“There’s no real consensus in markets so that’s why you’re getting this choppy trading where people are changing their view quite regularly, and that’s creating volatility,” said Ben Westmore, a minerals and energy economist at National Australia Bank Ltd. in Melbourne. “It does seem to be more sentiment driven and currency driven.” Crude for December delivery declined as much as 55 cents, or 0.7 percent, to $81.63 a barrel in electronic trading on the New York Mercantile Exchange. It was at $81.71 at 1:50 p.m. Singapore time. Yesterday, the contract added 24 cents to $82.18. Prices, little changed this week, have gained 3 percent since the start of the year.

The dollar climbed 0.4 percent to $1.3876 against the 16 nation euro, damping the appeal of commodities as a hedge against inflation. The yen rose against all major currencies......Read the entire article.


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Crude Oil Breaches 200 Day Moving Average, May Retest Highs

Crude oil is set to surpass this year’s highs above $87 a barrel after breaching the 200 day moving average yesterday, a “major” chart resistance level, according to Schork Group Inc. Crude, which reached a 19 month high of $87.15 a barrel on May 3 before tumbling as much as 26 percent, yesterday settled above the moving average for the first time in a month. Prices also cleared the middle of two Bollinger Bands, which plot support and resistance levels based on volatility, further boosting chances of a rally, according to Stephan Schork, president of the Villanova, Pennsylvania based consultants.

“At this point it is now hard to argue against a retest of the highs from early May,” Schork said today in an instant message. Crude traded near a one month high after rising yesterday as U.S. equities gained, bolstering speculation fuel demand will increase. The contract for July delivery was at $76.92 in electronic trading on the New York Mercantile Exchange, down 2 cents, at 10:57 a.m. Singapore time. Futures have gained more than 9 percent in the past year.

Oil earlier this week was trending in the middle of two Bollinger Bands, indicating it may be “make it or break it time for the bulls,” Schork said in a note yesterday. With prices having advanced, the market may push toward the 100 day moving average, which is at $78.39 a barrel today, before the upper Bollinger Band at $79.18. The nine day Relative Strength Index also shows oil is “neither overbought nor oversold,” signaling short-term trends may be sustained, according to Schork.

“We have switched our bias to bullish on crude oil after concerns about offshore drilling and potential weakness in the dollar align to create significant upward potential despite an abundance of supply,” he wrote yesterday.

Via Bloomberg News

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Shell Set to Open First Cluster of Hydrogen Filling Stations

Shell today opens its second hydrogen filling station in the greater New York City area. With a third due to open in the area later this month and one already operating there for more than a year, this is Shell’s first cluster of hydrogen filling stations.
The station opening today, at JFK international airport, is the result of a partnership between Shell, the Port Authority of New York and New Jersey, the US Department of Energy and General Motors. A third station in the Bronx, due to open late in July, has been developed.....Complete Story

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