Oil prices continue to decline for a second straight day as growing supplies of crude, gasoline and heating oil exposed how badly the U.S. recession has cut into energy demand.Oil demand fell by 3 percent, the government reported, and gasoline supplies surged by more than 5 million barrels even though refineries took in 316,000fewer barrels of crude each day. Still, the U.S currency continues to influence prices because a weak dollar effectively makes dollar-based crude cheaper.
News from the G-20 meeting could sway the value of the dollar and oil...as I type the $USD is @ 76.867, well off the lows of yesterday afternoon, just 24 hours ago.
Crude oil ($WTIC) has broken out of its ascending triangle formation and appears to want to test July lows. Transocean (RIG) which broke out of the same triangle formation looks like it will gravitate to the $80 level.
Yesterday, I suggested those in the Itz Pix Portfolio, to hedge positions with covered calls or a put strategy. This maybe the start of the overly late correction. *click on chart to expand image
No comments:
Post a Comment