Oil Prices - October 29

[dan_s]

From CME Group: "December Crude Oil prices grinded higher throughout the US trading session and registered a new four day high in the process. Early support for the market came from gains in Brent Crude Oil and a measure of bargain-hunting after last week's decline. An added source of support came in the wake of reports indicating a rather large decline in Libyan crude exports, and that seemed to stoke supply disruption concerns. Some traders also suggested that the energy market might have garnered a measure of support on US economic data this morning that showed a slightly stronger than expected reading on September Industrial Production. The December Brent vs. WTI Crude Oil spread rallied more than $2.00 during Monday's session to settle back above an $11 premium to Brent.

The play here may be to shift money from the Bakken companies to the Eagle Ford companies.
> Bakken oil discount to WTI has widened to $10/bbl since early September
> Eagle Ford oil sells at LLC prices which are between WTI and Brent.

[ghrcap]

If you are interested in the technicals for WTI, keep an eye on $87.95, the 300-WMA.
http://blogs.stockcharts.com/chartwatch ... rd-rhodes/

[dan_s]

In all my presentations I say there is strong support for WTI around $88/bbl, so thanks for posting this. Maybe I can read charts better than I thought.

[setliff]

i looked at that chart and imo that H&S is a real stretch. eg, the double head??? i know, i know that with technicals all things are not picture perfect, but

we'll see. time will tell.