WTI ( West Texas Intermediate ) Daily Crude Oil Prices - January 22nd 2009
Good morning everyone and just a short note to let you know that from today I will be using the WTI ( West Texas Intermediate) crude oil chart in the posts, but don’t worry, as I will also include the support and resistance figures for the London Brent Crude as well. So to yesterday’s oil trading where we saw a range of over 4 dollars with daily crude oil prices gaining $3.23 for the day. It was a significant move given that the market crossed the 14 and 40 day moving averages and managed to close above these indicators. Although the upward move in WTI ( West Texas Intermediate) has been amplified by the huge contango in Feb/March of $6.91, if crude oil prices hold convincingly above the simple moving averages we could see additional buyers targeting the high of early Jan at $50.49. Conversely, failure to hold paves the way towards the recent lows at $33.20. The short term trend is sideways while the medium and the long term trends are bearish.
WTI ( West Texas Intermediate):
Support: $42.41 (low of 07/01/09) Resistance: $46.74 (high of 02/01/09)
Support: $41.62 (14 day moving average) Resistance: $45.54 (high of 31/12/08)
Support: $40.25 (yesterday’s low) Resistance: $44.41 (yesterday’s high)
OIL (BRENT):
Support: $43.74 (low of 14/01/09) Resistance: $47.20 (high of 15/01/09)
Support: $42.85 (yesterday’s low) Resistance: $46.50 (high of 19/01/09)
Support: $42.12 (low of 12/01/09) Resistance: $45.76 (yesterday’s high)
Summary:
A long awaited strong rebound in the Dow and a weakening in the US dollar were the main drivers behind the advance in the crude oil price yesterday. Interestingly, with the expiration of the February WTI contract two days ago we have seen a drop in the arbitrage, (the difference between the Brent contract and WTI contract down to 1.5 dollars from over $7.00 -basis Feb/Feb) last week. The recent relative strength in crude oil will probably require some support from today’s EIA stats but if the inventory builds are bigger than expected that could pressure the oil prices back down.
DOE Stock estimates (change in millions of barrels)
Crude +0.4 Distillates -1.3 Gasoline +1.8
