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"
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"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.

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"
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"Zion Oil Anticipates Drilling Commencement in Israel by April 2009"
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"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

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"Oil Rises Above $52 on Speculation Fed Debt-Buying Plan Will Spur Growth"
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"Russia May Lease Cuban Offshore Oil Blocks, Reuters Reports"
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"TAQA Scales Back Huge North Sea Expansion Plans"
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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"
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"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