Saturday, November 9, 2013

ITZ Weekend Update: Crude Oil

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Secretary of State John Kerry has joined the talks with Iran over its nuclear program. Experts say an agreement could drive prices down $10 a barrel. Six western nations and Iran were expected to iron out an agreement during a meeting in Geneva that could ease sanctions against Iran, which have removed more than 1 million barrels per day (bpd) of oil from world markets.

However, talks hit a snag on Saturday with a French objection that the proposed deal did not do enough to curb Iran's nuclear ambitions. LINK

Israeli Prime Minister Netanyahu warned Kerry and his European counterparts that Iran would be getting "the deal of the century" if they carried out proposals to grant Tehran limited, temporary sanctions relief in exchange for a partial suspension of its nuclear program and a pledge not to expand it. LINK

Emerging legislation from Republican Sen. Bob Corker could block Obama from easing sanctions on Iran and create tougher conditions for reaching an interim deal with Tehran. LINK

For now, ITZ believes the decline in WTI Crude Oil is over done to the down side, $93 being support near term and is looking for a rally from here. On November 5th ITZ made the call to go long crude via Proshares Ultra Crude Oil ETF (UCO) LINK

ITZ entered UCO with 1/4 positions this past week *see comments to above link- @ $29.25 & $29.60.

The gasoline chart $GASO has been a reliable indicator in the past, as with $WTIC the RSI is testing the oversold 30 level.

1 comment:

itzstockchartz said...

Update, using $92 WTI crude level as a stop