Mexicos Oil Output Drops, Reliance Announces Plans On Purchase From Chevron

"Oil Falls for the First Time in Four Days on Signs Recession Is Deepening"
Crude oil fell for the first time in four days on concern energy demand will decline, after the U.S. economy contracted faster than anticipated....Complete Story


"Reliance Plans to Acquire Remaining Stake in Petroleum Unit From Chevron"
Reliance Industries Ltd., owner of the world’s largest refining complex, plans to acquire the remaining shares of unit Reliance Petroleum Ltd., after the stock dropped 54 percent in the past year....Complete Story

"Obama Budget Hits Oil and Gas Companies with New Fees,Taxes"
The Obama administration Thursday proposed raising at least $31.5 billion over 10 years from oil and gas companies, reflecting a repeal of tax breaks for domestic production and new charges on oil and gas production in the Gulf of Mexico....Complete Story

"Mexico's Oil Challenge Rises with New Output Drop"
Doubts are growing that Mexico can halt a four year decline in crude oil production after its January oil output slumped to a more than 13 year low, due to bureaucratic delays and technical challenges....Complete Story

Crude Oil Lower, Still Above 20 Day Moving Average

April crude oil was lower overnight due to profit taking as it consolidates some of this week's rally but remains above the 20 day moving average crossing at $42.63.

Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near term.

If April extends this week's rally, the reaction high crossing at $47.99 is the next upside target.

Closes below the 10 day moving average crossing at $40.81 are needed to confirm that a short term top has been posted.

First resistance is Thursday's high crossing at $45.30. Second resistance is the reaction high crossing at $47.99.

First support is the 20 day moving average crossing at $42.63.

Second support is the 10 day moving average crossing at $40.82.

Crude Oil Closes Higher, Stage Is Set For Higher Open On Friday

April crude oil closed higher due to short covering on Thursday and above the 20 day moving average crossing at $42.72 confirming that a short term low has been posted.

The high range close sets the stage for a steady to higher opening on Friday.

Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near term.

If April extends this week's rally, the reaction high crossing at $47.99 is the next upside target.

Closes below the 10 day moving average crossing at $40.58 would temper the near term friendly outlook in the market.

First resistance is today's high crossing at $45.30.

Second resistance is the reaction high crossing at $47.99.

First support is today's low crossing at $42.27.

Second support is the 10 day moving average support crossing at $40.58.

Crude Oil and Gasoline Futures Jump, Chevron Delays Nigerian Projects

"Crude Oil, Gasoline Futures Jump on Signs of Stronger U.S. Demand for Fuel"
Crude oil rose more than $2 a barrel and gasoline surged to a three-month high after U.S. stockpiles of the motor fuel dropped....Complete Story

"Chevron Delays 3 Nigerian Projects, Raises Cost Estimates as Much as 103%"
Chevron Corp., the world’s fourth- largest energy company, delayed the start of production at three Nigerian projects and raised cost estimates as much as 103 percent on some of its biggest new sources of output....Complete Story

"Compromise Energy Policy Within Reach"
BP's Chief Executive, Tony Hayward, writes that a collapse in world energy demand and the fall of energy prices present a rare once in a generation opportunity to craft an innovative energy policy for the United States....Complete Story

Crude Oil Continues To Signal Higher Prices Ahead

Crude oil was higher overnight as it extends Wednesday's rally and is trading above the 20 day moving average crossing at $42.63.

Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near term.

Closes above the 20 day moving average crossing at $42.63 are needed to confirm that a short term low has been posted.

If April renews this year's decline, psychological support crossing at $35.00 is the next downside target.

First resistance is the overnight high crossing at $43.57.

Second resistance is the reaction high crossing at $47.99.

First support is the 10 day moving average crossing at $40.44.

Second support is last Thursday's low crossing at $37.12.

Who Are The Winners and Losers On Wall Street?

Winners

Parker Drilling 33.59%
Meridian Resource 20.00%
Energy Partners 15.15%
Input/Output 13.79%
Pioneer Drilling 12.73%

Losers

Edge Petroleum -20.00%
Parallel Petroleum -13.42%
Daugherty Resources -7.27%
Swift Energy -5.07%
Ritchie Bros. Auctioneers -4.29%

Change based on the last 2 days of trading

Crude Oil Close Above 10 Day Moving Average, Looks Like The Near Term Low Is In

April crude oil closed higher due to short covering on Wednesday and above the 10 day moving average crossing at $40.35 signaling that a short term low appears to have been posted.

The high range close sets the stage for a steady to higher opening on Thursday.

Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near term.

Closes above the 20 day moving average crossing at $42.76 are needed to confirm that a short term low has been posted.

If April renews this month's decline, psychological support crossing at $35.00 is the next downside target.

First resistance is the 20 day moving average crossing at $42.76.

Second resistance is the reaction high crossing at $47.99.

First support is last Thursday's low crossing at $37.12.

Second support is psychological support crossing at $35.00.

Executives Press Congress On Offshore Drilling, Russia Near Deal In Nigeria

"Oil Executives Ask Congress Not to Delay Offshore Drilling"
Top executives at Devon Energy and Shell said Tuesday they will ask Congress not to stall the opening of new offshore drilling areas that can provide the U.S. with a reliable source of energy and jobs....Complete Story

"Gazprom Sees $2.5B Nigeria Deal Sealed in March"
Russia's Gazprom hopes to conclude a $2.5 billion oil and gas exploration deal with Nigeria by the end of March, establishing a 50/50 joint venture with state oil firm NNPC....Complete Story

"Oil Rises for Second Day After Report Shows Decline in Gasoline Supplies"
Crude oil rose to a three week high after a government report showed that U.S. gasoline inventories fell as refineries cut operating rates and demand strengthened....Complete story

"Gasoline Futures in New York Extend Gains as Report Shows Inventories Fell" Gasoline futures advanced after the Energy Department reported supplies fell the most in five months, refiners cut production and drivers bought more motor fuel...Complete story

Crude Oil Moves Back Above 20 Day Moving Average

April crude oil was higher overnight due to short covering as it consolidates some of Monday's decline.

Stochastics and the RSI are turning bullish hinting that a short term low might be in or is near.

Closes above the 20 day moving average crossing at $42.69 are needed to confirm that a short term low has been posted.

If April renews this year's decline, psychological support crossing at $35.00 is the next downside target.

First resistance is Monday's high crossing at $41.49.

Second resistance is the 20 day moving average crossing at $42.69.

First support is last Thursday's low crossing at $37.12.

Second support is psychological support crossing at $35.00.

Market Events To Watch For Wednesday, U.S. Energy Department Inventories

10:30 AM ET. Feb 20 US Energy Dept Oil Inventories

Crude Oil Stocks (previous 350.6M)

Crude Oil Stocks (Net Change) (expected +300K; previous -200K)

Gasoline Stocks (previous 218.7M)

Gasoline Stocks (Net Change) (expected -100K; previous +1.1M)

Distillate Stocks (previous 140.8M)

Distillate Stocks (Net Change) (expected -1.4M; previous -800K)

Refinery Usage (expected 82.2%; previous 82.3%)