Crude Oil Advances Above $75 a Barrel Before Inventory Report

Crude oil rose to a one month high in New York as the euro gained against the dollar, bolstering the appeal of commodities, and on forecasts that a government report will show U.S. supplies fell for a third week. Oil climbed as much as 2.1 percent after the 16 nation currency strengthened, following increases in global stock markets. U.S. crude oil inventories probably declined 1 million barrels in the week ended June 11, according to the median of 13 analyst responses in a Bloomberg News survey.

“The euro is higher and oil is following,” said Stephen Schork, president of consultant Schork Group Inc. in Villanova, Pennsylvania. “There’s been a very strong correlation between currencies and oil recently.” Crude oil for July delivery rose $1.51, or 2 percent, to $76.63 a barrel at 11:05 a.m. on the New York Mercantile Exchange. Oil touched $76.70, the highest level since May 12. Futures are up 8.5 percent from a year ago.

Brent crude oil for July settlement climbed $1, or 1.3 percent, to $76.20 a barrel on the London based ICE Futures Europe exchange. The July contract expires today. The more active August futures increased $1.15, or 1.5 percent, to $76.81 a barrel. The euro strengthened to $1.2316, up 0.8 percent from $1.2221 yesterday. The currency touched $1.1877 on June 7, the lowest level since March 2006, on concern that the debt crisis in Greece will spread to other countries in the region.

“The bulls are trying to move oil higher, and they’ve been getting intermittent support from the euro and dollar,” said Peter Beutel, president of energy 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

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Oil Falls to a 1-Month Low on Larger Than Expected Supply Gains

Crude oil fell to a one month low after a government report of a larger than forecast gain in U.S. fuel supplies signaled that a glut is forming in the world’s biggest energy consuming country. U.S. gasoline stockpiles surged 5.41 million barrels last week, more than 10 times what was forecast by analysts in a Bloomberg News survey. Inventories of distillate fuel, a category that includes heating oil and diesel, rose 2.96 million barrels, almost double what was estimated. Crude oil supplies also climbed in the week ended Sept. 18.

“We had three major stock builds and increases in the year on year surplus,” said Peter Beutel, president of trading adviser Cameron Hanover Inc. in New Canaan, Connecticut. “We are testing support and will have to see if we can break out of the recent range”.....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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