Crude Oil Closes Higher, Market Conditions Are Overbought

May crude oil closed higher on Thursday as it extends this month's rally. The high range close sets the stage for a steady to higher opening on Friday.

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 $48.67 would confirm that a short term top has been posted.

First resistance is today's high crossing at $54.66.
Second resistance is January's high crossing at $58.31.

First support is the 10 day moving average crossing at $51.27.
Second support is the 20 day moving average crossing at $48.67.

The Battle Insues, Obama and Oil Industry

"Oil, Gasoline Rise as Gains for Equities Signal Strengthening Fuel Demand"
Crude oil rose to the highest in almost four months and gasoline gained as an advancing U.S. stock market signaled that fuel demand will increase....Complete Story

"Obama Revives Battle with Oil Industry"
The Obama administration's push to raise taxes on the oil industry is reigniting a battle the industry fought and won last year....Complete Story

"Petrobras May Compete For Iraqi Oil Deal"
Petrobras could join a U.S. firm and two European companies in competing for a contract to develop Iraq's Nahr Bin Umar oil field....Complete Story

"US Company Halts More Oil Rigs In Venezuela"
U.S oil driller Helmerich & Payne said Wednesday it is continuing to halt operations in Venezuela due to delayed payments from Venezuela's state oil company....Complete Story

Crude Oil Overnight, Do Traders Expect A Lower Inventory Number Today?

May crude oil closed lower on Wednesday as it consolidates some of this month's rally.

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

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 $48.34 would confirm that a short term top has been posted.

First resistance is Tuesday's high crossing at $54.20.
Second resistance is January's high crossing at $58.31.

First support is the 10 day moving average crossing at $50.65.
Second support is the 20 day moving average crossing at $48.34.

10:30 AM ET. Mar 20 EIA National Gas Inventories, in billion cubic feet

....................Total Working Gas in Storage (previous 1651)

....................Total Working Gas in Storage (Net Change) (previous –30)

Costa Rica Says No To Oil Exploration, Vietnam and Nicaragua Begin Within Weeks

"Costa Rica President Says No to Oil Exploration"
President Oscar Arias this week has affirmed his commitment against oil exploration in Costa Rica. Speaking in front of the Legislative Assembly Monday afternoon to promote a bill regarding rural aqueducts....Complete Story

"PetroChina Sees `Severe Challenges' Ahead After Drop in Profit Last Year"
PetroChina Co., the world’s second- largest company by market value, said it faces “severe challenges” this year after refining losses and a slump in crude oil prices led to its first annual profit drop since 2001....Complete Story

"Exxon, Chevron Count $40 Billion Nightly to Protect Cash From Bank Crisis"
Exxon Mobil Corp. and Chevron Corp., their coffers swollen by last year’s record oil prices, are maneuvering to preserve a combined $40 billion in cash amid a global financial crisis that roiled the banking system....Complete Story

"Nicaragua, Vietnam Ink Oil Deal"
Vietnam will begin prospecting for oil in Nicaragua within four weeks, according to an agreement signed here between both countries´ state run companies....Complete Story

Crude Oil Trades Lower Overnight, Signals Are Still Bullish

May 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 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 $48.35 are needed to confirm that a short term top has been posted.

First resistance is Tuesday's high crossing at $54.20.
Second resistance is January's high crossing at $58.31.

First support is the 10 day moving average crossing at $50.67.
Second support is the 20 day moving average crossing at $48.35.

Crude Oil Closes A Whipsaw Trading Day In The High Range

May crude oil closed slightly higher on Tuesday as it extended this month's rally.

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

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 $47.93 would confirm that a short term top has been posted.

First resistance is today's high crossing at $54.20.
Second resistance is January's high crossing at $58.31.

First support is the 10 day moving average crossing at $49.76.
Second support is the 20 day moving average crossing at $47.93.

China Raises Fuel Prices, Apache Admits They Are In M and A Mode

"China Raises Fuel Prices for First Time This Year After Gains for Crude"
China, the world’s second-biggest energy user, raised fuel prices for the first time this year to reflect the gain in global oil prices....Complete Story

"Apache CEO Says Company On The Prowl For Assets"
Independent oil and gas company Apache Corp is actively looking to buy assets, its CEO told a conference on Tuesday. "We are paddling through the water looking for things to buy," Steven Farris, the chief executive of Apache, told the 2009 Howard Weil Energy Conference....Complete Story

"Saudi Pledges To Sustain Oil Investments"
Saudi Aramco will soon sign a memorandum of understanding with Japan's Sumimoto Chemical Co. to develop a second stage of its $10 billion PetroRabigh petrochemicals complex, the head of the state-run Saudi oil giant said Monday....Complete Story

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.