13 března 2009

13/3 Crude oil 4th week of gains ahead of the OPEC meeting

Crude oil increased to trade near $47 (fourth week of gains!!!!) as OPEC prepares to meet this weekend to seriously consider a fourth cut in output.

Despite four weeks of gains, the market is still oversupplied and the dynamic in the market is a supply and demand struggle. However as the equities have seen gains for a third day this has also had a positive effect on crude.

Right now the worst possible scenario (if you’re long) is that OPEC decides NOT to cut production (as they might see current $ level as sufficient at the moment) and equities will drop to new lows signaling further problems with future demand.

Support: 4545 4466 4367
Resistance: 4725 4880 5000

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