Trend Analysis For DXO Mid Day Tuesday

Mid Day Trend Analysis For DXO is clearly in an uptrend

Smart Scan Chart Analysis is showing some near term weakness. However, this market remains in the confines of a longer term uptrend Uptrend with tight money management stops.

Based on a pre-defined weighted trend formula for chart analysis, DXO scored +70 on a scale from -100 (strong downtrend) to +100 (strong uptrend):

+10.....Last Hour Close Above 5 Hour Moving Average
+15.....New 3 Day High on Monday
+20.....Last Price Above 20 Day Moving Average
+25.....New 3 Week High, Week Ending March 28th
-30.....New 3 Month Low in February
+70.....Total Score

Crude Oil Traders Take Profits Overnight

May crude oil was lower overnight due to profit taking as it consolidates some of Monday's rally.

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

If May extends this month's rally, January's high crossing at $58.31 is the next upside target.

Closes below the 20 day moving average crossing at $47.92 are needed to confirm that a short term top has been posted.

First resistance is Monday's high crossing at $54.05.
Second resistance is January's high crossing at $58.31.

First support is the 10 day moving average crossing at $49.75.
Second support is the 20 day moving average crossing at $47.92.

Key Oil Industry Market Events To Watch

4:30 PM ET. Mar 20....API Oil Industry Report

......................Crude Stocks (Net Change) (previous +4.66M)

......................Gasoline Stocks (Net Change) (previous +383K)

......................Distillate Stocks (Net Change) (previous +327K)

......................Refinery Runs (previous 82.3%)

Crude Oil Advances On Rally In Stocks and Hope Of Future Demand Increases

May crude oil closed higher on Monday as it follows the rally in stocks on hopes of future demand increases, extending this month's rally.

The high range close sets the stage for a steady to higher opening on Tuesday even though futures are done has of the time of this post.

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

If May extends this month's rally, January's high crossing at $58.31 is the next upside target.

Closes below the 20 day moving average crossing at $47.38 would confirm that a short term top has been posted.

First resistance is today's high crossing at $54.05.
Second resistance is January's high crossing at $58.31.

First support is the 10 day moving average crossing at $49.09.
Second support is the 20 day moving average crossing at $47.38.

Suncor To Buy Petro-Canada, Crude Oil Up Sharply On Fed Plan and Stock Rally

"Suncor To Buy Petro-Canada For $15 Billion Of Stock"
Suncor Energy Inc. (SU) said Monday it will acquire Petro-Canada (PCZ) for about $15 billion in stock as the two oil-sands companies bulk up to cut costs in the face of lower oil prices and a slowing world economy....Complete Story

"Crude Up Sharply As Stock Markets Rally"
U.S. crude oil futures rose on Monday, jumping above $53 a barrel as Wall Street and global stock markets rallied on a U.S. plan to buy up so-called toxic assets to tidy up bank balance sheets....Complete Story

"Schlumberger Says Another Round of Layoffs Coming"
Schlumberger is preparing for its second round of layoffs this year amid a global downturn in oil and gas activity that also has also pushed rivals to cut jobs....Complete Story

"Russia Sees No Economic Reason to Join OPEC, Energy Minister Shmatko Says"
Russia Energy Minister Sergei Shmatko said his country has no economic reason to join OPEC at the moment as the national oil industry already responds to market signals....Complete Story

Crude Oil Closes Off Friday's High As The U.S. Dollar Rallies

Crude Oil enjoyed a rally on Friday but closed well off the highs of the day as the U.S. dollar gained strength against other currencies. The posting of an inside day consolidates some of Thursday's rally.

The low range close sets the stage for a steady to lower opening on Monday.

Stochastics and the RSI are overbought making but remain neutral to bullish signaling that sideways to higher prices are possible near term.

If April extends this month's rally, January's high crossing at 56.86 is the next upside target.

Closes below the 20 day moving average crossing at 45.14 would temper the near
term friendly outlook in the market.

First resistance is Thursday's high crossing at 52.25.
Second resistance is the reaction's high crossing at 56.86.

First support is the 10 day moving average crossing at 47.56.
Second support is the 20 day moving average crossing at 45.14.

Horizon Ships First Oil From Oil Sands Project, Kuwait Cancels 2.1 Billion Deal, Israel Looks To Start Drilling In April 2009

"Oil Falls as Dollar's Gain Against the Euro Reduces Appeal of Commodities"
Crude oil fell from a three month high as the dollar climbed against the euro, decreasing the appeal of commodities as an alternative investment....Complete Story

"Zion Oil Anticipates Drilling Commencement in Israel by April 2009"
Zion anticipates that the drilling rig contracted for the Ma'anit-Rehoboth No. 2 well will arrive in Israel, clear customs and be fully rigged-up to begin drilling in April 2009....Complete Story

"Fluor Says Kuwait Halts Refinery Project, Canceling $2.1 Billion in Orders"
Fluor Corp. said the Kuwait National Petroleum Co. canceled its contract for the Al-Zour refinery project and the remaining $2.1 billion in work will be removed from first-quarter backlog....Complete Story

"Horizon Oil Sands Project Ships First Oil"
North Sea operator Canadian Natural Resources has shipped the first cargo from its Horizon Oil Sands project. CNR said the first shipment of synthetic crude....Complete Story

The SP 500 and Crude Oil.....Two Markets, Going In Two Different Directions

In our new video we are going to be looking at two different markets that are headed in two different directions.

We recently looked at the equity markets and alerted you to some very important levels that we thought the markets would have problems with. Those levels have now been reached and it remains to be seen if we are going to see the kind of market action that we were looking for.

Click Here To Watch Video

The second market were looking at is the crude oil market. This market has recently come alive to the upside and bear watching.

This is a short video, but it may contain the blueprint for these two markets. No registration is required to watch this video.

Higher Crude Oil Prices Possible Near Term

April crude oil was lower due to profit taking overnight as it consolidated some of this week's rally.

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

If April extends the rally, February's high crossing at $56.86 is the next upside target.

Closes below the 20 day moving average crossing at $45.12 are needed to confirm that a short term top has been posted.

First resistance is Thursday's high crossing at $52.25.

Second resistance is February's high crossing at $56.86.

First support is the 10 day moving average crossing at $47.53.

Second support is the 20 day moving average crossing at $45.12.

Can The Crude Oil Bulls Pull Through The Market Turn Down

April crude oil closed higher on Thursday as it extended this week's rally and closed above resistance crossing at $50.88.

The high range close sets the stage for a steady to higher opening on Friday. And closing above $50.88 on Friday would signal that a near term low has been set. We are calling for the SP 500 to open lower on Friday with a possible end to the recent rally. This could put the crude oil bull's in the position for some very heavy lifting on Friday.

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

If April extends this month's rally, January's high crossing at $56.86 is the next upside target.

Closes below the 20 day moving average crossing at $44.55 would temper the near-term friendly outlook in the market.

First resistance is today's high crossing at $52.25.

Second resistance is the reaction's high crossing at $56.86.

First support is the 10 day moving average crossing at $46.94.

Second support is the 20 day moving average crossing at $44.55.

Afghanistan Holds First Bid For Onshore Blocks, Crude Oil Touches Three Month High

"Afghanistan to Hold First Ever Hydrocarbon Bidding Round"
Afghanistan is holding the country's first ever hydrocarbon bidding round with three onshore blocks up for grabs....Complete Story

"Oil Rises Above $52 on Speculation Fed Debt-Buying Plan Will Spur Growth"
Crude oil rose above $52 a barrel, reaching a three month high, after the U.S. Federal Reserve announced plans to spend $1 trillion buying back debt....Complete Story

"Russia May Lease Cuban Offshore Oil Blocks, Reuters Reports"
A group of five Russian companies may lease as many as 15 oil blocks, representing 15,440 square miles, for exploration in Cuba’s portion of the Gulf of Mexico....Complete Story

"TAQA Scales Back Huge North Sea Expansion Plans"
New North Sea operator TAQA has confirmed that it is gearing down from the previously blistering pace of acquisitions, after posting Q4 profits that were down due to....Complete Story

Crude Oil Moves Higher, Is The Reflation Trade On?

April crude oil has opened higher and was higher overnight as it extends this week's rally. Is the reflation trade on?

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

If April extends the rally off February's low, the reaction high crossing at $50.88 is the next upside target.

Closes below the 20 day moving average crossing at $44.51 are needed to confirm that a short term top has been posted.

First resistance is the overnight high crossing at $50.00.

Second resistance is the reaction high crossing at $50.88.

First support is the 10 day moving average crossing at $46.86.

Second support is the 20 day moving average crossing at $44.51.

I still need two closing days above $50.88 to confirm the mid term low is in.

Crude Oil Still Throwing Off Bullish Signals After Inside Trading Day

April crude oil posted an inside day with a lower close on Wednesday as it consolidated some of this week's rally.

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

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

If April extends this month's rally, the reaction high crossing at $50.88 is the next upside target.

Closes below the 20 day moving average crossing at $44.03 would temper the near term friendly outlook in the market.

First resistance is Tuesday's high crossing at $49.82.

Second resistance is the reaction's high crossing at $50.88.

First support is the 10 day moving average crossing at $46.24.

Second support is the 20 day moving average crossing at $44.03.

Crude Oil Spikes On Federal Reserve News, Iran Complains About Low Oil Prices

"Oil Rises in Electronic Trading on Fed's New Plan to Shore Up U.S. Economy"
Crude oil rose in electronic trading after the Federal Reserve said it will buy as much as $750 billion in mortgage securities and $300 billion in longer term government bonds to help shore up the financial system....Complete Story

"Some in OPEC See $60/Barrel Oil in 2009"
Some members of OPEC have limited their oil price ambitions in 2009 due to the fragility of the world economy, despite OPEC's belief that higher prices are needed to support investment in new supplies....Complete Story

"Naimi Says OPEC Production Quota Compliance to Improve as Members Cut Back"
Saudi Arabia, OPEC’s biggest and most influential oil exporter, expects OPEC members to reduce their shipments from last month to better comply with their quotas, the country’s oil minister said....Complete Story

"Iran FM Calls Oil Price Unjust"
Iranian Foreign Minister Manouchehr Mottaki called the current price of oil both unrealistic and unjust on Tuesday, the official Iranian news agency IRNA reported.
Mottaki, on a visit to the....Complete Story

Traders Taking Crude Oil Profits Overnight

April crude oil was lower overnight due to profit taking as it consolidates some of this week's rally.

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

If April extends the rally off February's low, the reaction high crossing at $50.88 is the next upside target.

Closes below the 20 day moving average crossing at $44.04 are needed to confirm that a short term top has been posted.

First resistance is Tuesday's high crossing at $49.82.

Second resistance is the reaction high crossing at $50.88.

First support is the 10 day moving average crossing at $46.26.

Second support is the 20 day moving average crossing at $44.04.

I would like to see 2 consecutive days of closing price above $50.88 to declare the trend has turned to the upside.

Crude Oil Rallies, Sets New Three Month High

April crude oil closed higher on Tuesday as it extends this month's rally.

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

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

If April extends this month's rally, the reaction high crossing at $50.88 is the next upside target.

Closes below the 20 day moving average crossing at $43.47 would temper the near term friendly outlook in the market.

First resistance is today's high crossing at $49.82.

Second resistance is the reaction's high crossing at $50.88.

First support is the 20 day moving average crossing at $43.47.

Second support is the reaction low crossing at $39.44.

Crude Oil Set For Steady To Higher Open

Crude oil is slightly lower going into the equity markets opening this morning. Though yesterday's high range close sets us up for a steady to higher open this morning. Our current trend represents a wide trading range with 1st resistance at 48.83 and 1st support at the 20 day moving average of 42.95. Stochastics and the RSI are turning neutral to bullish hinting that sideways to higher prices are possible near term. If April extends this month's rally, the reaction high crossing at 50.88 is the next upside target. Closes below the 20 day moving average crossing at 42.95 would temper the near term friendly outlook in the market.

Crude Oil Surprises And Rallies To Close Higher

April crude oil closed higher on Monday as it extended last Thursday's rally.

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

Stochastics and the RSI are turning neutral to bullish hinting that sideways to higher prices are possible near term.

If April extends this month's rally, the reaction high crossing at $50.88 is the next upside target.

Closes below the 20 day moving average crossing at $42.95 would temper the near term friendly outlook in the market.

First resistance is last Monday's high crossing at $48.83.

Second resistance is the reaction's high crossing at $50.88.

First support is the 20 day moving average crossing at $42.95.

Second support is the reaction low crossing at $39.44.

Crude Oil Rises After Brief Down Turn On OPEC News

"Saudi, Iranian Oil Ministers: Prices Should Stand at $60-$75"
The oil ministers of Saudi Arabia and Iran said Monday their target goal for the price of oil was between $60 to $75 a barrel....Complete Story

"Oil Rises as Stocks Climb on Expectations of Economic Recovery by Year-End"
Crude oil rose as global stock markets climbed for a fifth day on optimism that the recession that has curbed demand may end by the close of the year....Complete Story

"Idling of U.S. Gas Rigs Setting Stage for Doubling of Prices"
Survey Shows Natural gas drillers from Devon Energy Corp. to XTO Energy Inc. are idling rigs at the fastest pace since 2002, setting the stage for this year’s worst commodity to almost double as supplies drop faster than demand....Complete Story

"Record Wellhead Order"
Subsea systems provider FMC has been selected by Anadarko to supply a record capacity subsea wellhead system rated for....Complete Story

Crude Oil Lower Overnight On OPEC Meeting News

April crude oil took a gap down and was lower overnight as it consolidates some of last Thursday's rally and digest the news from this weekend's OPEC meeting.

Stochastics and the RSI are neutral to bearish hinting that a short term top might be in or is near.

Closes below the 20 day moving average crossing at $42.79 are needed to confirm that a short term top has been posted.

If April renews the rally off February's low, the reaction high crossing at $50.88 is the next upside target.

First resistance is last Monday's high crossing at $48.83.

Second resistance is the reaction high crossing at $50.88.

First support is the overnight low crossing at $43.62.

Second support is the 20 day moving average crossing at $42.79.

Crude Closes Lower Shrugging Off OPEC Meeting On Sunday

April crude oil closed lower on Friday as it consolidated some of Thursday's rally.

The low range close sets the stage for a steady to lower opening on Monday.

Stochastics and the RSI have turned bearish hinting that a short term top might be in or is near.

Closes below the 20 day moving average crossing at $42.68 would temper the near term friendly outlook in the market.

If April extends this month's rally, the reaction high crossing at $50.88 is the next upside target.

First resistance is Monday's high crossing at $48.83.

Second resistance is the reaction's high crossing at $50.88.

First support is the 20 day moving average crossing at $42.67.

Second support is the reaction low crossing at $39.44.

Crude Oil Falls On IEA, OPEC Forecast. Exxon Brazil Project Rivals Tupi

"Oil Falls After IEA, OPEC Cut Demand Forecasts Because of Global Recession"
Crude oil fell after the International Energy Agency and OPEC cut their global demand forecasts because of the recession in major consuming countries....Complete Story

"Uganda's Environment Body Approves Early Oil Output"
Uganda's environmental authority has approved an early production scheme by Tullow Oil, removing a legal hurdle for development of crude in the Albertine basin....Complete Story

"Exxon Mobil's Brazil Find May Hold 8 Billion Barrels of Oil, Rivaling Tupi"
Exxon Mobil Corp.’s oil discovery off the coast of Brazil may hold enough crude to rival the nearby Tupi prospect as the Western Hemisphere’s largest find in three decades....Complete Story

"South Korea Appeals To Nigerian Government Over Quashed Oil Deal"
Seoul's state energy firm said Thursday it has petitioned Nigerian President Umaru Yar'Adua to reverse his country's decision to scrap oil exploration rights awarded to a South Korean consortium....Complete Story

Crude Oil Signals Short Term Top May Be In, 1st Resistance Is $48.83

April crude oil looks to extend Thursday's rally. Stochastics and the RSI are neutral to bearish hinting that a short term top might be in or is near.

Closes below the 20 day moving average crossing at $42.72 are needed to confirm that a short term top has been posted.

If April renews the rally off February's low, the reaction high crossing at $50.88 is the next upside target.

First resistance is Monday's high crossing at $48.83.

Second resistance is the reaction high crossing at $50.88.

First support is the 10 day moving average crossing at $44.56.

Second support is the 20 day moving average crossing at $42.72.

Crude Oil Whip Saws Traders With Back To Back Pivotal Days, Short Term Top May Still Be In

April crude oil closed sharply higher on Thursday ending a two day correction off Monday's high.

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

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

Closes below the 20 day moving average crossing at $42.46 would temper the near term friendly outlook in the market.

If April extends this month's rally, the reaction high crossing at $50.88 is the next upside target.

First resistance is Monday's high crossing at $48.83.

Second resistance is the reaction's high crossing at $50.88.

First support is the 20 day moving average crossing at $42.46.

Second support is the reaction low crossing at $39.44.

SBM Suffers 14.6% Profit Slide, OPEC Considers Next Cut

"SBM Suffers 14.6% Profit Slide"
Offshore contractor Single Buoy Moorings reported final results for 2008 in line with its preliminary announcement with net profit of US $228 m which was down 14.6% from $267 m in 2007....Complete Story

"OPEC February Production Down 28.07 Million Per Day"
The 12 members of the Organization of the Petroleum Exporting Countries pumped an average 28.07 million barrels per day (b/d) in February, as the oil producer club continued its efforts to slash oversupply and prevent oil prices falling further....Complete Story

"Oil Rises More Than $4 as OPEC Members to Consider Fourth Production Cut"
Crude oil rose more than $4 a barrel, the biggest gain in three weeks, before OPEC meets this weekend to consider a fourth production cut....Complete Story

Crude Oil Seems To Consolidate Rally, Turning Bearish

April crude oil closed lower due to profit taking on Wednesday as it consolidates some of its recent rally.

The low range close sets the stage for a steady to lower opening on Thursday.

Stochastics and the RSI are overbought and are turning bearish hinting that a short term top might be in or is near.

Closes below the 20 day moving average crossing at $42.27 would temper the near term friendly outlook in the market.

If April extends this month's rally, the reaction high crossing at $50.88 is the next upside target.

First resistance is Monday's high crossing at $48.83.

Second resistance is the reaction's high crossing at $50.88.

First support is the 20 day moving average crossing at $42.27.

Second support is the reaction low crossing at $39.44.

Pivotal Day For Crude Oil, Short Term Top May Be In

April crude oil closed lower due to profit taking on Wednesday as it consolidates some of its recent rally.

The low range close sets the stage for a steady to lower opening on Thursday.

Stochastics and the RSI are overbought and are turning bearish hinting that a short term top might be in or is near.

Closes below the 20 day moving average crossing at $42.27 would temper the near term friendly outlook in the market.

If April extends this month's rally, the reaction high crossing at $50.88 is the next upside target.

First resistance is Monday's high crossing at $48.83.

Second resistance is the reaction's high crossing at $50.88.

First support is the 20 day moving average crossing at $42.27.

Second support is the reaction low crossing at $39.44.

Crude Oil Falls After Report of Larger Than Expected U.S. Inventory Gain

"Iraq Inaugurates Oil Deal with China's CNPC"
Iraq inaugurated an oil project on Wednesday with the Chinese National Petroleum Company, activating the country's first major oil deal with a foreign firm since the fall of Saddam Hussein in 2003....Complete Story

"Crude Oil Falls After Report of Larger Than Expected U.S. Inventory Gain"
Crude oil futures fell after a U.S. government report showed a bigger than expected inventory gain as lower demand prompted refiners to slow processing....Complete Story


"Bad Weather Halts Kuwait Oil Exports"
Kuwait halted its oil exports of more than 2 million barrels per day on Tuesday due to bad weather, spokesman for state refiner Kuwait National Petroleum Co (KNPC) Mohammad Al-Ajmi said....Complete Story

Can The U.S. Economy Survive $80.00 Crude Oil

We have been saying for some time that the U.S. economy has found itself in the position that if oil spikes again even those that work will not be able to afford to drive, better yet the millions of unemployed. And that includes major industry.

For the first time since September of 2007, the crude oil (NYME_CL) market has flashed a positive signal that it is headed higher. This is the first buy signal that we have seen in over 18 months in the energy markets.

The big question is, if crude oil is headed higher, how much of a price increase can the US economy afford and withstand?

Find out here:Watch Video

Here is a raw commodity that is used by everyone and the U.S. has no control over. This key commodity to commerce just happens to be in areas that are normally hostile to the US. If we see a hiccup in the supply chain that changes this market dynamic, even for a short time period, we could see oil move back to the $80/barrel range in a heart beat.

So how will this affect the US equity markets? If crude oil heads back to the $75-$80 range, I expect that the major indices will head south. I call it the 551 syndrome. 5000 on the Dow, 500 on the S&P 500, and finally 1000 on the NASDAQ.

In this short video we will share with you the potential target zones we could see in the next 6 to 12 months in crude oil.

So with the trend in crude oil in a positive trajectory and the trend in the US equity markets in a negative trajectory, I think the two will feed off themselves. Look for traders and hedge funds to move aggressively in both these areas with abandon.

Lastly with no reinstatement of the up-tick rule, expect stocks to once again get pummeled to oblivion.

Find out here:Watch Video

Profit Taking Drives Crude Oil Lower

April crude oil closed lower due to profit taking on Tuesday as it consolidated some of Monday's rally.

The low range close sets the stage for a steady to lower opening on Wednesday.

Stochastics and the RSI are becoming overbought but remain neutral to bullish signaling that sideways to higher prices are possible near term.

If April extends this month's rally, the reaction high crossing at $50.88 is the next upside target.

Closes below the 20 day moving average crossing at $42.32 would temper the near term friendly outlook in the market.

First resistance is Monday's high crossing at $48.83.

Second resistance is the reaction's high crossing at $50.88.

First support is the 10 day moving average crossing at $44.15.

Second support is the 20 day moving average crossing at $42.32.

10:30 AM ET. Mar 6 US Energy Dept Oil Inventories

...Crude Oil Stocks (previous 350.59)

...Crude Oil Stocks (Net Change) (expected -300K; previous -757K)

...Gasoline Stocks (previous 215.51)

...Gasoline Stocks (Net Change) (expected -700K; previous +168K)

...Distillate Stocks (previous 143.2M)

...Distillate Stocks (Net Change) (expected +400K; previous +1.67M)

...Refinery Usage (expected 83%; previous 83.1%)

Chevron To Ramp Up Large Projects, Kazakhstan Will Not Allow Downturn To Effect Their Projects

"Chevron to Buck Downturn with Major Project Developments"
Chevron says it is well positioned in 2009 with a strong balance sheet and numerous projects coming on stream. The company expects new project start ups and continued ramp ups to contribute production of 650,000 barrels per day....Complete Story

"Kashagan Production Still Scheduled for 2012"
The economic downturn will not affect the development of Kazakhstan's Kashagan oil field, said a Shell executive. First production is still scheduled for the fourth quarter 2012....Complete Story

"U.S. Lowers Forecast for 2009 Global Oil Demand as Recession Cuts Fuel Use"
The U.S. reduced its forecast for 2009 global crude oil consumption for the sixth month in a row as the economic slowdown cuts fuel purchases....Complete Story

"OPEC Needs 100% Quota Compliance Before Further Cuts, Qatar's Attiyah Says"
OPEC, supplier of about 40 percent of the world’s oil, needs full compliance with production quotas before discussing a further reduction in output, Qatar’s oil minister said....Complete Story

Crude Oil Bulls Extend The Rally, First Resistance Now $48.83

April crude oil was steady to higher overnight as it extends last week's rally.

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

If April extends the rally, the reaction high crossing at $50.88 is the next upside target.

Closes below the 20 day moving average crossing at $42.39 would confirm that a short term top has been posted.

First resistance is Monday's high crossing at $48.83.

Second resistance is the reaction high crossing at $50.88.

First support is the 10 day moving average crossing at $44.30.

Second support is the 20 day moving average crossing at $42.39.

4:30 PM ET. Mar 6 API Oil Industry Report

............Crude Stocks (Net Change) (previous -463K)

............Gasoline Stocks (Net Change) (previous -642K)

............Distillate Stocks (Net Change) (previous +1.6M)

............Refinery Runs (previous 83.5%)

Oil Market Winners and Losers

Winners

Infinity 42.86%
Input/Output 40.66%
Stone Energy 24.86%
McMoRan Exploration 15.09%
Brigham Exploration 9.65%

Losers

TETRA Technologies -13.73%
FX Energy -12.70%
Allis-Chalmers Energy -11.54%
Pioneer Drilling -8.64%
Quicksilver Resources -8.05%

Change based on the last 2 days of trading

Crude Oil Rally Continues, Next Upside Target Is $47.99

April crude oil closed higher on Monday as it extends the rally off February's low.

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

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

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

Closes below the 20 day moving average crossing at $42.30 would temper the near term friendly outlook in the market.

First resistance is today's high crossing at $48.83.

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

First support is the 10 day moving average crossing at $43.53.

Second support is the 20 day moving average crossing at $42.31.

Oil Climbs On Speculation Of OPEC Cuts, Oil Companies Struggling To Limit Lay Offs

"Oil Climbs to Two Month High on Speculation OPEC Will Cut Output Further"
Crude oil rose to a two month high in New York on speculation the Organization of Petroleum Exporting Countries will decide to reduce output when ministers gather in Vienna on March 15....Complete Story

"Oil Industry Strives to Limit Its Layoffs"
As oil companies cut costs amid slumping energy prices, they are determined not to repeat the mistakes of the 1980s oil bust, when mass layoffs left the industry ill prepared for the eventual rebound....Complete Story

"Oil at $50 Looms Amid Prospects for More Restictions on OPEC Production"
OPEC’s record production cuts are draining the glut in world oil markets, leading traders to bet that $50 crude is two months away....Complete Story

"OPEC: Current Oil Prices Cannot Guarantee Future Market Stability"
OPEC is expected to lower production at its upcoming meeting. The OPEC Secretary General recently reported that the current excessively low oil prices cannot guarantee its long term stability in the crude market....Complete Story

Crude Oil Higher Overnight, Remains Above 20 Day Moving Average

April crude oil was higher overnight as it extends last week's breakout above the 20 day moving average crossing at $42.30.

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

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

Closes below last Tuesday's low crossing at $39.44 are needed to confirm that a short term top has been posted.

First resistance is the overnight high crossing at $47.03.

Second resistance is February's high crossing at $47.99.

First support is the 10 day moving average crossing at $43.52.

Second support is the 20 day moving average crossing at $42.30.

Crude Oil Closes Higher, Set For A Possible Higher Opening On Monday

April crude oil closed higher on Friday and is poised to extend the rally off February's low.

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

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

If April extends Wednesday's rally, February's high crossing at $47.99 is the next upside target.

Closes below Tuesday's low crossing at $39.44 would temper the near-term friendly outlook in the market.

First resistance is Wednesday's high crossing at $45.76.

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

First support is the 20 day moving average crossing at $42.28.

Second support is Tuesday's low crossing at $39.44.

Oil and Commodities Higher On Weakening Dollar, Petrobras Expects A Jump In Profits

"Crude Oil Advances as the Dollar Weakens, Increasing Appeal of Commodities"
Crude oil in New York rose as the U.S. dollar weakened against the euro, bolstering the appeal of commodities as an alternative investment....Complete Story

"Exxon CEO's Meetings with Obama Constructive"
ExxonMobil Chief Executive Rex Tillerson said Thursday that meetings with President Barack Obama and other government officials to discuss energy policy had been "cordial" and "constructive"....Complete Story

"Oil Might Reach $60 Should OPEC Cut Production, BlueGold Hedge Fund Says"
Oil may rise 35 percent to $60 a barrel should OPEC agree to cut production this month, according to BlueGold Capital Management LLP....Complete Story

"Nicaragua Inks New Offshore Exploration Deal"
Nicaragua has signed an exploration and production agreement with Infinity Energy Resources for two separate licenses in the Caribbean Sea....Complete Story

"Petrobras May Report a 24% Jump in Profit on Slumping Real, Survey Shows"
Petroleo Brasileiro SA, Brazil’s state-controlled oil company, may say fourth-quarter profit rose 24 percent to 6.26 billion reais ($2.64 billion) after a slumping real boosted the value of the company’s dollar assets....Complete Story

Crude Oil Pushing To Rally Friday Morning Along Side Equities

April crude oil was higher overnight as it consolidates above the 20 day moving average crossing at $42.23.

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

If April extends Wednesday's rally, February's high crossing at $47.99 is the next upside target.

Closes below Tuesday's low crossing at $39.44 are needed to confirm that a short term top has been posted.

First resistance is Wednesday's high crossing at $45.70.

Second resistance is February's high crossing at $47.99.

First support is the 10 day moving average crossing at $42.60.

Second support is Tuesday's low crossing at $39.44.

Crude Oil Closes Lower On Profit Taking, Higher Prices Possible Near Term

April crude oil closed lower on Thursday due to profit taking as it consolidated some of Wednesday's rally.

The low range close sets the stage for a steady to lower opening on Friday.

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

If April extends Wednesday's rally, February's high crossing at $47.99 is the next upside target.

Closes below Tuesday's low crossing at $39.44 would temper the near term friendly outlook in the market.

First resistance is Wednesday's high crossing at $45.76.

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

First support is the 10 day moving average crossing at $42.12.

Second support is Tuesday's low crossing at $39.44.

Crude Oil Lower Overnight On Profit Taking, Higher Prices Still Possible Near Term

April crude oil was lower overnight due to profit taking as it consolidates some of Wednesday's rally.

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

If April extends Wednesday's rally, February's high crossing at $47.99 is the next upside target.

Closes below Tuesday's low crossing at $39.44 are needed to confirm that a short term top has been posted.

First resistance is Wednesday's high crossing at $45.70.

Second resistance is February's high crossing at $47.99.

First support is the 20 day moving average crossing at $42.32.

Second support is Tuesday's low crossing at $39.44.

Crude Oil Closes Higher At $45.38, Above Previous High Crossing

April crude oil closed higher on Wednesday and spiked above the previous reaction high crossing at $45.30.

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

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

Closes above last week's high crossing at $45.30 are needed to signal that a larger degree rally into March is unfolding.

Closes below February's low crossing at $37.12 would renew this year's decline while opening the door for a possible test of psychological support crossing at $35.00 later this year.

First resistance is last week's high crossing at $45.30.

Second resistance is today's high crossing at $45.76.

First support is today's low crossing at $41.04.

Second support is Tuesday's low crossing at $39.44.

NYMEX Crude Up On Surprise EIA Draw, China Stimulus Boost

"NYMEX-Crude up on surprise EIA draw, China, OPEC"
U.S. crude futures held gains above $3 late Wednesday morning, after government data showed a surprise drawdown in domestic crude supplies last week, not the
increase forecast by analysts....Complete Story

"Venezuela to Cut Oil Contracts As Prices Fall"
Venezuela said it will seek to renegotiate contracts with oil-service companies, with PDVSA planning to cut its spending on oil-service contractors by 40%....Complete Story

"Ecuador Will Not Confiscate Perenco's Oil Fields Over Tax Debt"
Ecuadorean Oil Minister Derlis Palacios said Wednesday that the country will not seize the oil fields of French company Perenco over debts....Complete Story

"Oil Gains a Second Day on Speculation China Will Boost Stimulus Spending"
Crude oil rose for a second day on speculation China will broaden efforts to boost economic growth, bolstering fuel demand in the world’s third largest economy....Complete Story

"Exxon Seen Using $31.4 Billion Cash Hoard for Field Stakes, Not Takeovers"
Exxon Mobil Corp., the world’s largest oil company, will probably tap its $31.4 billion mountain of cash to buy stakes in offshore fields from state oil companies rather than mounting takeover bids for major rivals....Complete Story

April Crude Oil Higher Overnight

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

Stochastics and the RSI are turning bearish hinting that sideways to lower prices are possible near term.

If April extends Monday's decline, February's low crossing at 37.12 is the next downside target.

Closes above last week's high crossing at 45.30 are needed to confirm that a short term low has been posted.

First resistance is the overnight high crossing at 43.57.

Second resistance is last week's high crossing at 45.30.

First support is Tuesday's low crossing at 39.44.

Second support is February's low crossing at 37.12.



10:30 AM ET. Feb 27 US Energy Dept Oil Inventories

Crude Oil Stocks (previous 351.3M)

Crude Oil Stocks (Net Change) (expected +900K; previous +700K)

Gasoline Stocks (previous 215.3M)

Gasoline Stocks (Net Change) (expected -1M; previous -3.4M)

Distillate Stocks (previous 141.6M)

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

Refinery Usage (expected 81.5%; previous 81.4%)

Crude Closes Higher, Above The 10 Day Moving Average

April crude oil closed higher on Tuesday due to short covering as it consolidated some of Monday's decline and closed above the 10 day moving average crossing at $41.01.

The high range close sets the stage for a steady to lower opening on Wednesday.

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

Closes above last week's high crossing at $45.30 are needed to signal that a larger degree rally into March is unfolding.

Closes below February's low crossing at $37.12 would renew this year's decline while opening the door for a possible test of psychological support crossing at $35.00 later this year.

First resistance is the 20 day moving average crossing at $42.26.

Second resistance is last Thursday's high crossing at $45.30.

First support is today's low crossing at $39.44.

Second support is February's support crossing at $37.12.

Oil Rebounds On Potential OPEC Price Support, Russia Continues Talks With Spain

"Early Signs of Petroleum Demand Revival in U.S."
G. Allen Brooks, in his analysis of rising and falling crude oil prices, notes that weekly demand in the oil market has begun to show signs of improving....Complete Story

"Gazprom Discusses Spanish Involvement in Russian Projects"
Russia's Gazprom is involved in talks with Spanish Repsol, as well as other companies, about the Russian Yamal field development....Complete Story

"Oil Rebounds After 10% Drop on Speculation OPEC May Act to Support Prices"
Oil gained, after dropping 10 percent yesterday, on speculation OPEC may take further steps to support prices at its meeting later this month....Complete Story

"BP Cuts Production Forecast Through 2012; Trims Spending on Low Oil Price"
BP Plc, Europe’s second-largest oil company, cut its production forecast through 2012 and reduced a spending target because of lower crude prices....Complete Story

"Shell Sees Recession Improving Opportunities to Acquire Oil, Gas Assets"
Royal Dutch Shell Plc, Europe’s biggest oil company, said the recession is creating opportunities to acquire oil and natural-gas assets....Complete Story

"Libya Wants Conoco, Hess, Marathon to Agree to Lower Oil Production Share"
Libya urged ConocoPhillips, Hess Corp. and Marathon Oil Corp. to agree to lower their share of production from the Waha oil venture as state revenue is squeezed by lower crude prices and OPEC-mandated output cuts....Complete Story

Crude Oil Higher Overnight On Short Covering, Lower Prices Probable Near Term

April crude oil was higher overnight due to short covering as it consolidates some of Monday's decline but remains below the 10 day moving average crossing at $40.93.

Stochastics and the RSI are turning neutral signaling that sideways to lower prices are possible near term.

If April extends Monday's decline, February's low crossing at $37.12 is the next downside target.

Closes above last week's high crossing at $45.30 are needed to confirm that a short term low has been posted.

First resistance is the 10 day moving average crossing at $40.93.

Second resistance is the 20 day moving average crossing at $42.21.

First support is the overnight low crossing at $39.44.

Second support is February's low crossing at $37.12.

4:30 PM ET. Feb 27 API Oil Industry Report

Crude Stocks (Net Change) (previous +341K)

Gasoline Stocks (Net Change) (previous -898K)

Distillate Stocks (Net Change) (previous +1.76M)

Refinery Runs (previous 81.9%)

Crude Oil Closes Sharply Lower, Crossing Below The 10 Day Moving Average

April crude oil closed sharply lower on Monday due to profit taking as it consolidated some of last week's rally.

Today's decline lead to a close below the 10 day moving average crossing at $40.75 thereby tempering the near term friendly outlook in the market.

The low range close sets the stage for a steady to lower opening on Tuesday.

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

Closes above last week's high crossing at $45.30 are needed to signal that a larger degree rally into March is unfolding.

Closes below February's low crossing at $37.12 would renew this year's decline while opening the door for a possible test of psychological support crossing at $35.00 later this year.

First resistance is last Thursday's high crossing at $45.30.

Second resistance is the reaction high crossing at $47.99.

First support is today's low crossing at $39.84.

Second support is February's support crossing at $37.12.

Oil Falls Again, Iran Say No March Cut and Saudi Arabia Counts Rig Count

"Oil Falls More Than $4 on Signs Recession Is Deepening, Curbing Fuel Use"
Crude oil fell more than $4 a barrel, the biggest decline in seven weeks, on signs that the recession in the world’s major energy consuming countries is deepening....Complete Story

"Oil Faces Hardening $50 Resistance, PetroMatrix Says: Technical Analysis"
Crude oil’s recovery may be shackled by strengthening resistance at $50 a barrel, according to analysis by consultant PetroMatrix GmbH....Complete Story

"Iran's oil minister sees no OPEC output cut in March"
Iran's Oil Minister Gholam-Hossein Nozari said that the Organization of Petroleum Exporting Countries(OPEC) would not cut its output in March, the satellite Press TV reported on Sunday. "I do not think we move....Complete Story

"Saudi Arabia to Cut Drilling Rigs Amid Lower Oil Demand"
Saudi Arabia, the world's largest oil exporter, is expected to cut the number of oil rigs by as much as 20% until year-end amid lower crude output....Complete Story

"Wrong Reason to Tap Reserves"
Unlike some of the other black holes into which Washington pours money these days, the Strategic Petroleum Reserve's value is grasped easily. If needed, it could replace about 44% of daily U.S. oil....Complete Story

Crude Oil Lower Overnight, All Indicators Show Higher Prices Possible Near Term

April crude oil was lower overnight due to profit taking as it consolidates some of last week's rally but remains above the 20 day moving average crossing at $42.49.

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

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

Closes below the 10 day moving average crossing at $40.96 are needed to confirm that a short term top has been posted.

First resistance is last 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 $42.49.

Second support is the 10 day moving average crossing at $40.96.

Crude Oil Closes Lower, But Remains Above 20 Day Moving Average

April crude oil posted an inside day with a lower close on Friday as it consolidated some of this week's rally but remains above the 20 day moving average crossing at $42.66.

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

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 $40.87 would temper the near term friendly outlook in the market.

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

Second resistance is the reaction high crossing at $47.99.

First support is today's low crossing at $42.25.

Second support is the 10 day moving average support crossing at $40.87.