Crude Oil Sets Stage For Possible Lower Opening On Wednesday Morning

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

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

If March extends this year's decline, December's low crossing at 38.00 is the next downside target.

Closes below December's low crossing at $38.00 would open the door for a possible test of psychological support crossing at $30.00 later this winter.

Closes above the 20 day moving average crossing at $42.15 would temper the near term bearish outlook in the market.

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

First resistance is the 20 day moving average crossing at $42.15.

Second resistance is the reaction high crossing at $48.59.

First support is today's low crossing at $38.41.

Second support is December's low crossing at $38.00.

"Chevron Locked Into Contracts.......Also Trying To Unload Big Foot"

"Chevron, BP Locked Into $200 Million Oil Wells Amid Crude Price Declines"
Chevron Corp. other oil producers are locked into drilling offshore wells that cost as much as $200 million each because of rig contracts that were signed when crude was soaring above $140 a barrel....Complete Story

"Pemex May Weather Financial Crisis by Avoiding Marginal Projects, CEO Says"
Petroleos Mexicanos, the state owned oil company, is in better shape to weather the global financial crisis because it avoids marginal projects such as oil sands, Chief Executive Officer Jesus Reyes Heroles said....Complete Story

"Chevron Approaches Oil Cos over Big Foot Farm Out"
Chevron Corp. has approached rival oil producers about the possibility of acquiring part of its stake in the Big Foot oil field in the U.S. Gulf of Mexico....Complete Story

"Mitsubishi, Petrobras Team Up to Build $830MM Deepwater Drillship"
Mitsubishi Corp and Petrobras have agreed to jointly build an $830 million ultra-deepwater drillship, slated for delivery in June 2010....Complete Story

Crude Oil Signals Bearish Pricing Possible Near Term

March crude oil was slightly higher overnight due to short covering as it continues to trade sideways to lower off the late January high.

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

If March extends the decline, January's low crossing at $39.11 is the next downside target.

Closes above the 20 day moving average crossing at $42.23 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 $40.77.

Second resistance is the 20 day moving average crossing at $42.23.

First support is last Friday's low crossing at $38.60.

Second support is December's low crossing at $38.00.

Crude Oil Industry News For Monday

"Crude Oil Rises on Speculation Economic Stimulus Plan Will Revive Demand"
Crude oil rose the most in two weeks on speculation that a U.S. stimulus plan will revive demand in the world’s largest energy consuming country....Complete Story

"Oil Sands Explorer UTS Energy Rejects Total's $506 Million Takeover Offer"
UTS Energy Corp.’s board said Total SA’s C$617 million ($506 million) offer for the Canadian oil sands explorer is inadequate and recommended shareholders reject the bid by Europe’s third largest petroleum company....Complete Story

"Saudi Arabia Keeps China Oil Cos at Arm's Length"
Despite burgeoning trade between China and Saudi Arabia, progress is slow for China's biggest oil and gas companies in securing equity stakes in Saudi's oil and natural gas fields....Complete Story

"OPEC Shelves 35 Oil Projects, Warns of Falling Investment"
OPEC nations have collectively postponed 35 oil drilling projects that had been in various stages of development a sign that the cartel is starting to feel the impact of low crude prices....Complete Story

"Nigerian Oil Workers Strike over Attacks, Kidnappings"
Oil workers in Nigeria's oil-producing Niger Delta went on strike Monday to complain about a lack of protection from militant groups who attack oil facilities and kidnap workers....Complete Story

Crude Oil Industry Headline News For Friday

"Venezuela Oil Workers Pressure Rig Companies As Woes Mount"
Oil workers aligned with the government of President Hugo Chavez are pressuring rig companies to continue drilling, despite the state's failure to pay for those services at a time of rock-bottom oil prices....Complete Story

"Surge in US Crude Stocks Blunts OPEC Cuts"
Despite OPEC's cut of 1.3 million barrels a day in January, the growing supply glut is a serious setback to the cartel's efforts to curb the crude oil contango....Complete Story

"Crude Oil Falls as U.S. Unemployment Rate Surges, Signaling Lower Demand"
Crude oil fell to a two week low after unemployment in the U.S. climbed in January to the highest level since 1992, signaling that the recession in the world’s biggest energy consuming country is deepening....Complete Story

"Korea National Oil, Ecopetrol Acquire Peru's Petro Tech for $900 Million"
Korea National Oil Corp. and Ecopetrol SA bought Petro-Tech Peruana SA of Peru for $900 million to increase production as falling crude prices reduce the cost of acquiring commodity assets....Complete Story

Oil Industry Stock Market Winners and Losers

Winners

Brigham Exploration 7.46%
Goodrich Petroleum 6.44%
McMoRan Exploration 6.26%
Halliburton 6.15%

Losers

Edge Petroleum -11.11%
FMC Technologies -10.04%
Allis-Chalmers Energy -7.16%
Devon Energy -6.17%
Meridian Resource -5.88%

Change based on the last 2 days of trading

Crude Oil Industry Headline News

"Oil Rises, Rebounding From Two Week Low, on Signs of Stronger Fuel Demand"
Crude oil rose, following a rally in the stock market, and as a government report showed U.S. fuel consumption increased....Complete Story

"Chevron Reports New Discovery in Gulf of Mexico That May Rival Jack Find"
Chevron Corp., the second biggest U.S. oil company, made an oil discovery in the Gulf of Mexico that may rival the 500 million-barrel Jack prospect found in 2004....Complete Story

"US Lawmakers Preparing to Draft New Offshore Drilling Laws"
Federal lawmakers are gearing up to legislate a new offshore drilling plan that could restrict development in major areas of the Outer Continental Shelf, but allow some acreage previously closed to access to be opened for exploration....Complete Story

"China's Sinopec Takes A Close Look at Mexico's Oil Patch"
China's Sinopec Group is the first integrated oil company to test the waters in Mexico after Congress passed an energy reform last fall....Complete Story

"Apache Won't Resort to Layoffs at This Time"
Oil and gas producer Apache Corp. will hold on to its employees despite the fact that energy price and profits have plummeted in recent months....Complete Story

Crude Oil Industry Headline News For Wednesday

"Pan-European Oil Pipeline in Doubt"
An oil pipeline linking the Caspian basin and Italy by 2012 appears to be in doubt due to a lack of clear commitment from partner countries Croatia, Romania, Serbia, Slovenia and Italy.....Complete Story

"Oil Declines After Report Shows Larger Than Expected U.S. Inventory Gain"
Crude oil fell after a government report showed that U.S. inventories jumped more than twice what analysts forecast....Complete Story

"Petrobras to Sell 10-Year Bonds on Market Gabrielli Called Too Expensive"
Petroleo Brasileiro SA, Brazil’s state-controlled oil company, is selling dollar bonds today, a week after Chief Executive Officer Jose Sergio Gabrielli said he put off plans to issue debt because international markets are "too expensive"....Complete Story

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

Crude Oil Industry Headline News For Monday

"Oil Falls on Speculation Fuel Demand Will Drop More as Recession Deepens"
Crude oil fell on speculation that the recession in the U.S., the world’s biggest energy consuming country, will deepen and reduce demand....Complete Story

"Gasoline Futures Fall, Narrowing Refiner Margins, as Strike May be Averted"
Gasoline futures fell the most in almost a month and refinery margins narrowed on speculation a strike by workers at U.S. fuel plants may be averted....Complete Story

"Oil Industry Wary of New US Interior Secretary's Policies"
Despite Interior Secretary Ken Salazar's vow to draft a comprehensive energy policy that includes new domestic oil and gas drilling, the industry is watching with a wary eye....Complete Story

"Iraq Oil Fields Ready for Revival, Await Foreigners"
Iraq has launched a bidding round for some of its largest oil and gas fields, which it hopes will attract multibillion dollar investments. There is still some confusion over the deals, scheduled to be awarded by June....Complete Story