Oil Plunges 3% to Just Over $69

Oil prices fell more than 3% to $69 a barrel on Tuesday, pressured by a stronger U.S. dollar and as weak consumer confidence data hit equities. Crude for August delivery traded $2.15 lower at $69.34 a barrel, off its earlier eight month high of $73.38. The U.S. dollar rose against the euro, adding pressure to oil prices. A stronger dollar makes commodities denominated in the currency more expensive for investors.....Complete Story

Petrobras Focuses on Costs Ahead of Rig, Platform Tenders

Brazilian state run energy giant Petrobras continues to take a hard line on cost cuts as it prepares to launch tenders for drilling rigs and production platforms. The tenders will likely come to market soon, Chief Financial Officer Almir Barbassa said at a meeting with reporters. "We're in the final phase of the concession process," Barbassa said. The company is hammering out details for financing drill rigs, a complex task, the executive added.....Complete Story

BP, CNPC Win Iraqi Rumaila Oil Field Development Deal

BP and China National Petroleum Corp. have won a contract for the development of Iraq's Rumaila oil field, the first of eight giant Iraqi oil and gas development projects for which Iraq began receiving bids Tuesday, Iraqi officials said. Selected foreign companies including international oil majors and Japanese companies are making bids. Iraq is offering contracts to foreign companies for the first time in around 40 years since its energy.....Complete Story

Oil Falls From Eight Month High on U.S., U.K. Economic Reports

Crude oil fell from an eight month high and gasoline slipped as reports showed that U.S. consumer confidence showed an unexpected decline in June and the U.K. economy shrank the most since 1958. Oil dropped more than $2 after the Conference Board’s sentiment index weakened to 49.3 from a revised 54.8 in May, the New York based research group said today. Gross domestic product in the U.K. decreased 2.4 percent in the first quarter from the final three months of 2008, the Office for National Statistics said today in London.....Complete Story

Oil Trades Little Changed on Forecast U.S. Fuel Stockpiles Rose

Crude oil traded little changed, poised for its biggest quarterly gain since 1990 before a report tomorrow expected to show an increase in U.S. gasoline stockpiles. Gasoline inventories in the U.S. probably climbed 2 million barrels in the week ended June 26 from 208.9 million the previous week as refineries increased production, a Bloomberg News survey showed. Oil fell back after climbing as much as 2.6 percent as a weaker dollar drove investors to commodities as a hedge against inflation and Nigerian rebels attacked oil installations.....Complete Story

Crude Oil Market Commentary For Tuesday Morning

Crude oil was slightly higher overnight as it extends Monday's rally above the 20 day moving average crossing at 70.41. Stochastics and the RSI have turned bullish signaling that sideways to higher prices are possible near term.

If August extends this week's rally, this month's high crossing at 73.90 is the next upside target. Closes below Monday's low crossing at 68.36 are needed to confirm that a short term top has been posted.

Tuesday's pivot point, our line in the sand is 70.60

First resistance is the overnight high crossing at 73.38
Second resistance is this month's high crossing at 73.90

First support is the 10 day moving average crossing at 70.15
Second support is Monday's low crossing at 68.36

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Light Trading Day as Market Eyes Oil

Monday's markets closed following a day of light trading. News of a pipeline attack boosted Exxon and Sallie Mae's SLM Corp. benefited from a government contract. Simon Constable reports after the closing bell.

IEA Cuts 5 Year World Oil Demand Outlook on Economy

The International Energy Agency, an adviser to oil consuming nations, cut five-year forecasts for global crude demand because of the economic slump, predicting consumption won’t regain last year’s levels until 2012. The IEA cut its oil demand estimates for every year through 2013 by about 3 million barrels a day, it said in its Medium Term Oil Market Report today. Consumption will average 86.76 million barrels a day in 2012, the first year it will.....Complete Story

Natural Gas Post an Inside Day

Natural gas posted an inside day with a lower close on Monday ending a two day short covering bounce off last week's low. The low range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI remain neutral to bearish signaling that sideways to lower prices are possible near term.

If August extends last week's decline, the reaction low crossing at 3.710 is the next downside target. From a broad perspective, August needs to close above 4.820 or below 3.520 to confirm a breakout of this spring's trading range and point the direction of the next trending move.

First resistance is the 10 day moving average crossing at 4.12
Second resistance is the reaction high crossing at 4.57

First support is last Wednesday's low crossing at 3.87
Second support is the reaction low crossing at 3.71

China Increases Diesel, Gasoline Prices to Help Oil Refiners

China, the world’s second biggest energy consumer, will increase fuel prices by as much as 11 percent today, allowing the nation’s refiners to pass on climbing crude oil costs. Prices for gasoline and diesel will rise by 600 yuan ($87.80) a metric ton, the National Development and Reform Commission said yesterday, the third increase this year. Jet fuel costs will rise by 620 yuan a ton. China’s consumer prices fell for a fourth month in May.....Complete Story