Crude Oil finished the session $4.57 higher Monday, settling at $54.50 basis the January contract. The strength appears to be part of a broader reaction to weakness in the Dollar Index and a rally in equities led by a government rescue of Citigroup. The idea that OPEC will agree to cut production further in their next meeting is also supportive to the Crude Oil trade.
Looking at the technical picture of Crude Oil, it made another new low for the move last
Friday. Monday's rally tested the 10-day moving average before setting back. Support is found at $50 with Fridays low of $48.25 as further support. Crude Oil resistance is basically $55 and $60. Technically, the market is still in a downtrend and rallies are to be sold.
The Energy Information Administration will release the monthly Oxygenate Report in the near future for ethanol. This will be for production, usage and stocks for the month of September, which kicked off the 2008/2009 marketing year.
|
|
|