Where Is Crude Oil Headed This Week, And Beyond

What an amazing rally the bulls have enjoyed, but it is not rocket science to understand that just like the equity markets oil is more likely to retrace back to $45 than it is to continue up to $65 from here. Look for crude to pull back to the shaded area in the not to distant future.....

Drilling For Oil In Illinois?

"Indigo-Energy Completes Drilling Oil, Gas Wells in Illinois Basin"
Indigo-Energy, ticker IDGG, has completed the drilling of four wells in the Illinois Basin. The company revealed its plans to commence drilling in this region in December of 2008 and is announcing today the completion of this project.....Complete Story

Crude Oil Closes Lower On Unemployment Concerns

"Oil Drops On Concern U.S. Unemployment Will Erode Fuel Demand"
Crude oil dropped after a report showed the U.S. jobless rate at a 25-year high, adding to concern fuel demand will slide further. Oil fell as much as 3.1 percent after the Labor Department said the economy lost more than 650,000 jobs for a fourth consecutive month. Total daily fuel demand averaged over the past four weeks reached the lowest since October, the Energy Department said April 1.....Complete Story

Crude Oil Higher Overnight, Falling At Friday's Open

May crude oil was higher overnight as it extends Thursday's rally above the 10 day moving average crossing at 51.95.

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

If May extends this week's rally, the reaction high crossing at 54.66 then January's high crossing at 58.31 are the next downside targets.

Closes below Wednesday's low crossing at 47.26 would confirm that a short term top has been posted.

First resistance is the overnight high crossing at 53.90.
Second resistance is March's high crossing at 54.66.

First support is the 20 day moving average crossing at 50.23.
Second support is Wednesday's low crossing at 47.26.

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The June Dollar was steady to slightly lower overnight as it extends Thursday's decline below the 10 day moving average crossing at 85.05.

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

Multiple closes below the 10 day moving average crossing at 85.05 would temper the near term friendly outlook in the market.

Closes above Monday's high crossing at 86.61 are needed to confirm that a short-term low has been posted.

First resistance is the 20 day moving average crossing at 86.09.
Second resistance is Monday's high crossing at 86.61.

First support is Thursday's low crossing at 84.46.
Second support is March's low crossing at 83.14.

Crude Oil Stock Market Winners and Losers

Winners

Atlas Pipeline Partners, L.P....+16.07%
FX Energy.......................+14.39%
Meridian Resource................+9.52%
Stone Energy.....................+7.81%
Parallel Petroleum...............+7.03%

Losers

Energy Partners..................-16.67%
Edge Petroleum...................-10.53%
Syntroleum........................-8.22%
Brigham Exploration...............-5.79%
McMoRan Exploration...............-2.77%

Changes based on the last 2 days of trading

Crude Oil Closes Higher On Falling Dollar and Stronger Equities Market

May crude oil closed up $4.15 at $52.54 a barrel today. Prices closed nearer the session high today on short covering and fresh speculative buying interest. A stronger U.S. stock market and optimism in the wake of the G-20 meeting in London boosted crude today. A sharply lower U.S. dollar also aided crude today. Bulls have regained upside near term technical momentum.

The June U.S. dollar index closed down 109 points at 84.87 today. Prices closed nearer the session low today. Bulls faded today. Bulls' next upside price objective is to close prices above solid technical resistance at this week's high of 86.61.

Crude Oil Settles Higher At One Week High Above $52 Barrel

Crude oil futures zoomed back above $50 a barrel Thursday as traders responded to hopes demand will firm up if the world economy does.

Light, sweet crude for May delivery settled at $52.64, up $4.25 or 8.8%, a barrel on the New York Mercantile Exchange. Brent crude on the ICE Futures exchange settled $4.31 higher at $52.75 a barrel.

The Nymex close was the highest in a week. Oil started the day strongly in sympathy with rising world stock markets and was further fueled by....Complete Story

Crude Oil Surges!

"Crude Oil Surges on Optimism That Worst of Global Economic Crisis Is Over"
Crude oil rose the most in three weeks as leaders of the Group of 20 nations meeting in London agreed on measures to fight the global recession. Oil surged after the G-20 said it will implement new rules on compensation and bonuses, expand controls on hedge funds and move to clean up toxic assets....Your keyword

Crude Oil Extends This Week's Decline

May crude oil closed lower on Wednesday and below the 20 day moving average crossing at 49.60 as it extends this week's decline.

The mid range close sets the stage for a steady opening on Thursday.

Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term.

If May extends this week's decline, the reaction low crossing at 43.74 is the next downside target.

Closes above the 10 day moving average crossing at 51.77 would temper the near term bearish outlook.

First resistance is the 20 day moving average crossing at 49.60.
Second resistance is the 10 day moving average crossing at 51.77.

First support is today's low crossing at 47.26.
Second support is the reaction low crossing at 43.74.

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The June Dollar closed higher on Wednesday due to short covering as it consolidates some of Tuesday's decline. The mid range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near term.

If June extends this week's rally, the 20 day moving average crossing at 86.55 is the next upside target. Closes above the 20 day moving average crossing at 86.55 would confirm that a short term low has been posted.

Closes below the weekly uptrend line crossing near 83.70 would confirm that a major top in the Dollar has been posted while opening the door for a larger degree decline this spring.

First resistance is the 20 day moving average crossing at 86.55.
Second resistance is Monday's high crossing at 86.61.

First support is the 10 day moving average crossing at 84.89.
Second support is the reaction low crossing at 83.14.

Crude Oil Moving Lower, Below 20 Day Moving Average

May crude oil was lower overnight as it consolidates below the 20 day moving average crossing at 49.61.

Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term.

If May extends this week's decline, the reaction low crossing at 43.74 is the next downside target.

Closes above the 10 day moving average crossing at 51.78 are needed to confirm that a short term low has been posted.

First resistance is the 20 day moving average crossing at 49.61.
Second resistance is the 10 day moving average crossing at 51.78.

First support is Tuesday's low crossing at 47.77.
Second support is the reaction low crossing at 44.72.

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And because the crude oil/dollar trade is on........
The June Dollar was higher overnight due to short covering as it consolidates below the 20 day moving average crossing at 86.55. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near term.

Closes above the 20 day moving average crossing at 86.55 would confirm that a short term low has been posted.

Closes below the 10 day moving average crossing at 84.90 would temper the near term friendly outlook in the market.

First resistance is the 20 day moving average crossing at 86.55.
Second resistance is Monday's high crossing at 86.61.

First support is the 10 day moving average crossing at 84.90.
Second support is March's low crossing at 83.14.

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

....................Crude Oil Stocks (previous 356.5M)

....................Crude Oil Stocks (Net Change) (expected +2.6M; previous +3.3M)

....................Gasoline Stocks (previous 214.5M)

....................Gasoline Stocks (Net Change) (expected -1.1M; previous -1.14M)

....................Distillate Stocks (previous 143.9M)

....................Distillate Stocks (Net Change) (expected -500K; previous -1.58M)

....................Refinery Usage (expected 82.2%; previous 82%)

Crude Oil Should Open Higher Wednesday, Lower Prices Still Likely Near Term

May crude oil closed higher on Tuesday due to short covering but remains below the 20 day moving average crossing at 49.53.

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

Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term.

If May extends Monday's decline, the reaction low crossing at 43.74 is the next downside target.

Closes above the 10 day moving average crossing at 51.78 would temper the near term bearish outlook.

First resistance is Monday's high crossing at 52.25.
Second resistance is last Thursday's high crossing at 54.66.

First support is today's low crossing at 47.77.
Second support is the reaction low crossing at 43.74.

And since the crude-dollar trade seems to be on......

The June Dollar closed lower on Tuesday due to profit taking as it consolidates some of Monday's rally but remains above the 10 day moving average. The mid range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near term.

If June extends this week's rally, the 20 day moving average crossing at 86.71 is the next upside target. Closes above the 20 day moving average crossing at 86.71 would confirm that a short term low has been posted.

Closes below the weekly uptrend line crossing near 83.00 would confirm that a major top in the Dollar has been posted while opening the door for a larger degree decline this spring.

First resistance is Monday's high crossing at 86.61.
Second resistance is the 20 day moving average crossing at 86.71.

First support is the 10 day moving average crossing at 84.79.
Second support is the reaction low crossing at 83.14.

Oil Rises on Stock Rally, Caps Biggest Monthly Gain Since May

"Oil Rises on Stock Rally, Caps Biggest Monthly Gain Since May"
Crude oil rose, heading for its biggest monthly gain since May, as equities increased and a weaker dollar enhanced the appeal of commodities. Oil climbed as much as 3.3 percent after U.S. and European stocks rebounded....Complete Story

SocGen Technical Analyst Says "Oil May Fall to $28 a Barrel"
Crude oil is set to drop to $28 a barrel in New York in the second quarter, according to technical analysis by Societe Generale SA. Prices may rally until meeting resistance at $71 a barrel and....Complete Story

"Petrobras Invests Heavily in Offshore Drilling"
With massive deepwater finds in the pre-salt layer, as well as the Campos and Santos Basins, Brazilian state-owned Petrobras pledged an investment of $174.4 billion for 2009 to 2013. With a firm commitment to....Complete Story

"Kuwait Raises Oil Output Capacity"
OPEC member Kuwait has boosted its oil production capacity to three million barrels per day and aims to raise it to four million by 2020, a top oil executive said on Monday. "We have the capability to....Complete Story

Is The Move In Crude Oil Over?

Crude oil plays such an integral part in our lives whether we care to admit it or not. This one source of energy drives the US economy and indeed the world’s economy.

So what’s ahead for the new black gold? After seeing this market move to its best levels in some time, we have seen a sharp pullback from the recent highs as the crude oil market appears to be mimicking the equity markets.

In our new video we go into detail as to what we think is happening in this market. I think we’ll find the analysis interesting, revealing and above all educational.

Please feel free to comment here on our blog. We’re so happy that traders are sharing their thoughts with our Stock Market Club community.

As always, the video is with our compliments and there is no registration requirements.

Enjoy the video

Crude Oil Prices Higher On Short Covering Overnight

May crude oil was higher due to short covering overnight as it consolidates some of Monday's decline but remains below the 20 day moving average crossing at 49.53.

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

If May extends Monday's decline, the reaction low crossing at 43.74 is the next downside target.

Closes above the 10 day moving average crossing at 51.79 are needed to confirm that a short term low has been posted.

First resistance is the 20 day moving average crossing at 49.53.
Second resistance is the 10 day moving average crossing at 51.80.

First support is Monday's low crossing at 48.11.
Second support is the reaction low crossing at 44.72.

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

....................Crude Stocks (Net Change) (previous +4.58M)

....................Gasoline Stocks (Net Change) (previous -805K)

....................Distillate Stocks (Net Change) (previous -1.58M)

....................Refinery Runs (previous 82.1%)

Crude Oil Falls Most in Four Weeks as Equities Tumble, Dollar Strengthens

"Iraqi Oil Company Issues Tender To Drill 45 Wells in South Rumaila"
The South Oil Company, an affiliate of the Iraqi Oil Ministry, has issued a new tender to drill 45 oil wells in the country's southern fields in a bid to address a sharp fall in southern oil production, the oil ministry said in its Web site....Complete Story

"Crude Oil Falls Most in Four Weeks as Equities Tumble, Dollar Strengthens"
Crude oil fell the most in four weeks as tumbling equity markets signaled that the recession in major energy-consuming countries may deepen, curbing fuel use....Complete Story

"Austria’s OMV Eyes Emirate’s Oil"
After more than a decade as a partner in Abu Dhabi’s main petrochemicals venture, OMV, Austria’s biggest oil company, is ready to branch into oil and gas production in the emirate....Complete Story

Crude Oil Moving South, Hinting That Short Term High Is In

Pre market Monday morning May crude oil was already down 1.85 breaking through 1st support of 51.83. May crude oil closed lower on Friday due to profit taking as it consolidated some of this month's rally. The low range close set the stage for the lower opening we will get today.

Stochastics and the RSI are overbought and are turning neutral to bearish hinting that a short term top might be in or is near. Closes below the 20 day moving average crossing at 48.97 would confirm that a short term top has been posted.

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

First resistance is Thursday'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 51.83.
Second support is the 20 day moving average crossing at 48.97.

Russia To Become China's Biggest Energy Supplier? Active Oil Rigs In The U.S. Drops By 46

"Oil Falls as Dollar's Gain Against the Euro Reduces Appeal of Commodities"
Crude oil in New York fell the most in two weeks as the dollar’s gain against the euro reduced the appeal of commodities to investors and stock markets declined....Complete Story

"Goldman Sachs Says Oil Rally Vulnerable as Demand Drops, Contango Widens"
Oil’s rally to a four-month high is vulnerable to a correction because near-term demand for crude isn’t yet strong enough to support a sustained advance, Goldman Sachs Group Inc. said....Complete Story

"Russia Capable of Becoming China's Biggest Energy Supplier"
Russia is fully capable of becoming the biggest energy supplier for China in upcoming 15 years," Russian Deputy Prime Minister Alexander Zhukov said here Friday. Zhukov made the remarks in addressing the China-Russia Investment Forum....Complete Story

"Number Of Active Oil Rigs Drops By 46"
The number of rigs actively exploring for oil and natural gas in Wyoming fell by two this past week. Nationally, the number of such rigs in the United States dropped by 46 this week to 1,039....Complete Story

Crude Oil Trading Signals May Be Turning Bearish

May crude oil closed lower due to profit taking on Friday as it consolidated some of this month's rally. The low range close sets the stage for a steady to lower opening on Monday.

Stochastics and the RSI are overbought and are turning neutral to bearish hinting that a short term top might be in or is near. Closes below the 20 day moving average crossing at 48.97 would confirm that a short term top has been posted.

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

First resistance is Thursday'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 51.83.
Second support is the 20 day moving average crossing at 48.97.

How High Can Crude Oil Rally Given The World Economy

In our new video on the crude oil market we see how this market has been creeping up in value and in now trading over $50 a barrel. The question is "How high can crude oil rally given the world economy?"

Just Click Here To Watch Crude Oil Video

The potential is that crude can go higher as the United States is addicted to oil and cannot at this stage run without it. The same goes for most other countries. Whatever the arguments are for crude oil we think you will find this short video of interest.

The short video outlines the path for crude oil and is free to watch.

We hope you learn something from this video. Feel free to give us your feedback on what you think is going to happen to this market in the future.

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The direction of the S&P 500 is such a big part of our daily research for trading crude oil that I want to include this video on the S&P on the rally we have been experiencing.

Take a look at this short video and see if the rally in the S & P 500 market is for real, or if it's just a rally in a bigger bear market.

Just Click Here To Watch SP 500 Video

Our brand new video details what we think is going on in the equity markets. We also want to share with you the key S & P 500 number that if broken will turbo charge this market.

The video is, as always, free to watch. Please feel free to leave a comment, your comments and feedback are always welcome.

Crude Oil Looks To Open Lower

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.

Pre market crude oil is already trading down in the 52.69 area. We are going short for a scalp trade against the trend as we look for crude oil to follow the SP 500 down at the opening. Don't get stuck in this trade, we will probably take our profits at the 10 day moving average 51.27.