Oil hits $105.97 record as dollar drops to all-time low

Crude oil rose to $105.97 a barrel, the third day this week New York prices have reached a record, as the U.S. dollar fell to its lowest ever against the euro. Crude oil for April delivery rose to $105.97 a barrel on the New York Mercantile Exchange, the highest since futures began trading in 1983. Gold and copper also advanced to all-time highs as the sinking dollar made commodities priced in the U.S. currency cheaper.

The euro climbed to $1.5358, the highest level since the single currency's debut in 1999, as the European Central Bank held its key interest rate at a more than six-year high as the Federal Reserve keeps cutting its benchmark rate. Besides dollar-led buying, oil rose after Colombian rebels bombed the Transandino Pipeline yesterday, escalating a cross-border dispute with Ecuador.

The 13 members of OPEC, which supplies over 40% of the world's oil, decided at a meeting in Vienna yesterday to maintain quotas at 29.67 million barrels a day, on the grounds that supply and demand are balanced.

- Oil remains in record-setting mode, moving further into literally uncharted territory. At $105.97, it is 27% above its 200dma of $83.15 which puts it deep in overbought territory, and yet it remains overbought. That's what being in a bull market is all about - prices become overbought, and they stay overbought.

Since we are at record price levels, there are no absolutely chart precedents to talk about resistance levels. But if I have to make a call, I might be talking about $110, $125 and then $150. Support levels remain at $100, $95, $89 and $85, and in this kind of market you could probably ignore the last 2 or 3 of these.

Post a Comment:

Comments are closed for this entry.

« OPEC keeps output... | Main | ABC Guide to Beating... »

Most popular blog postings on lowem.log :

1. Singapore MRT rail network length to double by 2020
2. 2010 Nissan Leaf electric car specifications : 107hp, 24KWh lithium-ion batteries, 100-mile range
3. Live spot gold price quotes chart on COMEX
4. 2010 Toyota Prius specifications released : 50 mpg, 1.8L, 134hp, Ni-MH, solar roof option
5. AVG Anti-Virus Free Edition 2011 direct download link
6. Real-time live gold and silver price quotes chart on COMEX
7. Singapore electric vehicles : Government agencies EMA and LTA to study EV introduction
8. Book review : Shut Down by William Flynn

Featured articles on lowem.log :

1. Book review : Shut Down by William Flynn
2. Singapore electric cars testing starts with 9 electric vehicles
3. Honda, GS Yuasa JV to make lithium-ion batteries for 2010/2011 Honda Civic Hybrid
4. 2010 Honda Civic Hybrid preliminary specifications released
5. 2010 Honda CR-Z hybrid, 2010 Honda Fit/Jazz hybrid models confirmed
6. 2010 Toyota Prius specifications released : 50 mpg, 1.8L, 134hp, Ni-MH, solar roof option
7. NYMEX crude oil recovers from $32.40 low after 2.2 mbpd OPEC production cut announced
8. Singapore : Nuclear power not ruled out