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.

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%)