Author: johnkilduff

September crude oil showed positive reversal action on the session, mounting a comeback from early morning lows to register its highest close since May 29th. While a weaker than expected report on US retail sales did weigh momentarily, the market stabilized and eventually turned higher.… Read more

WTI is melting away from Friday’s highs. Sentiment lacks conviction so is pushing the flow towards safe
havens. Chinese Premier Wen Jiabao said ‘China’s economy has not yet entered a recovery and economic difficulties may continue for some time’ underlining the
possibility of weak energy demand.… Read more

Prices fell sharply following the EIA report, but held support at 2.659, posting only a 2.72 low for the session. 3.079 resistance went unchallenged for another day, with the market topping out at 2.92; so bias stays neutral until either is settlement breached.… Read more

The mind set of market participants has swung over to slowing global economic growth and off monetary policy, for the moment anyway. They have recognized the desperation and waning influence the institutions have in trying to stay ahead of the slowing of the global economy.… Read more

WTI prices have been on a steady upward path since the Asian opening last night. Market participants appear to be voting in the affirmative that the FOMC minutes from the June meeting will contain hints that more stimulative action is on the way.… Read more

WTI has regained some of the footing it lost after the disappointing jobs number on Friday, but potential bulls are on shaky ground. Monetary easing by central banks in China, the euro zone and Britain on Thursday smacked of desperation had underscored concerns about a fragile global economy that has muddied the demand outlook for commodities which tumbled on Friday by their most this year…

Make no mistake, this rally is about the prudent cover of short positions, particularly those established recently. This phenomenon results from the confluence of several important factors. The rapid draining of momentum, once a previous low was breached, simultaneous with new concerns about Iran surfacing, and an apparent concession by Germany on an important issue relative to resolution to the European debt crisis…

Daft Iran is threatening to close the Strait of Hormuz against EU ships and sanctions supporters. They have also called for the OPEC brethren to convene to address the “unacceptable” prices under $100. Naturally, this has reignited fears of supply disruption as the threat of martial action increases and counters the downside pressure from the negative effect from the world’s largest economy’s manufacturing…

With a little bit of help from Germany to its friends, oil prices bounded higher, joining the massive global short-squeeze on Friday. Oil surged upwards of $9.00, at one point, mirroring the move in equities and the falling US dollar. And the rally held up, defying our outlook that it would not last.… Read more