Monday August 24, 2009

NYMEX crude oil prices jump to 2009 high above $74

channelnewsasia.com :

NYMEX crude oil prices jumped on Friday [21 Aug 2009] to a 2009 high above $74, propelled by a weak US dollar, tumbling American crude reserves, rising equities and positive eurozone data. New York's main futures contract, light sweet crude oil for delivery in Oct 2009, closed at $73.89 per barrel, after soaring to $74.72 dollars - a level last seen on 20 Oct 2008.

The EUR/USD euro forex rate leapt as high as $1.4376 after a key purchasing managers index improved to the break-even point in August after a long contraction, a sign of a stabilizing eurozone economy. Crude oil (live oil prices) spiked on Wednesday after the US DoE said American inventories of crude fell a massive 8.4 million barrels last week, indicating that demand was recovering. Oil prices had hit an all-time record high of $147.27 in Jul 2008 before collapsing to $32 in Dec 2008 due to weak energy demand arising from the effects of the world financial crisis. The market has since clawed back ground on hopes of economic recovery.

- Like I said earlier, while the 50-/200-dma crossover remains valid, crude oil prices will probably enter a consolidation period between $70-75. Fresh probes may be launched at the $75 resistance level from to time. Unless the momentum crowd suddenly goes wild and decides to make a big run at the barrier all at the same time, it will take some kind of trigger event to break through $75.

Unless you are an extremely short-term-oriented day trader, it can be frustrating sitting still during consolidation periods. And in times like these, it might do one some good to recall the words of legendary speculator Jesse Livermore : "It's not the thinking that makes the money; it's the sitting."

See also :

1. NYMEX crude oil prices rise above $60, snapping 3-day decline
2. NYMEX crude oil prices rise to $68 on brighter economic outlook
3. NYMEX crude oil prices hit $72.20 on rising outlook and falling dollar
4. NYMEX crude oil prices ease after surge to $73.24

(2009-08-24 13:40:16 SGT) [Energy] Permalink

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