WTI Crude Oil Price Chart - Daily Oil Prices 11th June 2009
“We create our own reality” are words attributed to one of George W Bush’s aides, but which could equally apply to the oil market, where crude oil prices continue to surge higher managing to absorb both a rebound in the US dollar and some weakening in equity markets. All this comes against a backdrop of high inventories and falling year on year demand. In addition yesterday’s EIA oil stats revealed a much larger than expected draw in crude stocks, thereby adding considerable weight to a market looking to justify the move higher in daily oil prices. Indeed yesterday’s rally in crude oil prices took the oil price to fresh highs, last seen in October 2008, and ending the day with a 90 cents gain at $71.50. From a technical perspective yesterday’s candle ended the session as an up bar closing well above all three moving averages, and it is testimony to the strength of the current rally that oil prices could retrace by as much as 5 dollars per barrel, back to the 9 day moving average, while still maintaining their bullish momentum. My short term target for the current move in crude oil still remains at $75 per barrel highlighted at last month’s OPEC meeting, a view supported by price of Nymex crude oil futures which rose above $72 per barrel for the first time since October 2008.
The short and medium term trends are bullish and the long term trend is bullish.
WTI:
Support: $70.51 (yesterday’s low) Resistance: $75.85 (high of 21/10/08)
Support: $68.44 (low of 09/06/09) Resistance: $74.28 (high of 17/10/08)
Support: $67.50 (low of 05/06/09) Resistance: $71.78 (yesterday’s high)
OIL (BRENT):
Support: $69.92 (yesterday’s low) Resistance: $73.29 (high of 21/10/08)
Support: $68.24 (low of 09/06/09) Resistance: $71.90 (high of 17/10/08)
Support: $67.35 (low of 05/06/09) Resistance: $71.20 (yesterday’s high)
DOE Stock Figures (change in millions of barrels)
Crude -4.4 (-0.4) Distillates -0.3 (+1.2) Gasoline -1.5 (+1.3)
