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The current rebound in the global equity markets as well as the US dollar weakness is driving crude oil prices higher. The falling greenback can make dollar-priced commodities like oil cheaper for buyers holding rival currencies. That tends to stimulate demand and prices.
Bank of Japan's surprise announcement of a zero-interest rate policy, with further monetary easing measures in a bid to combat the harmful strength of the yen and beat persistent deflation.
On Monday, crude oil futures had enjoyed mixed fortunes as Iraq announces a 25% increase in the country's proven oil reserves to 143.1 billion barrels from 115 billion barrels; a sharp rise in proven oil reserves to rank it number three in the world. Platt's reported Russian oil output hit a new post-Soviet era high of 10.12 million b/d, cementing its position as the world's biggest oil producer. Oil may be “overbought” after climbing to an eight-week high and will be vulnerable to a drop if prices fail to rally further, according to technical analysis by Petromatrix GmbH. read
Itz Stock Chartz has been targeting $82.50 resistance up to the August high of $83.05 to take a 1/2 position off of the table on ProShares Ultra Crude Oil ETF $UCO & looking at a possible entry into ProShares UltraShort Crude Oil $SCO. Crude oil may fail to breach the $86.70 a barrel level this week based on statistical analysis used by traders to gauge prices, the Schork Group Inc read story
After the close today API: The American Petroleum Institute reported a rise of 4.4 million barrels in the nation's crude-oil supplies for the week ended Oct. 1. read