{"id":2871,"date":"2009-07-09T10:28:55","date_gmt":"2009-07-09T15:28:55","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=2871"},"modified":"2009-07-09T10:28:55","modified_gmt":"2009-07-09T15:28:55","slug":"crude-futures-log-further-large-declines","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/07\/09\/crude-futures-log-further-large-declines\/","title":{"rendered":"Crude Futures Log Further Large Declines"},"content":{"rendered":"

By Fast Brokers<\/strong> – Crude futures are continuing their brisk decline on rising volume today, entering the heavy-handed $60-$61\/bbl zone we mentioned in our previous analysis.\u00a0 Crude\u2019s declines are feeding off of quite a few fuels, the foremost being a report from OPEC saying they don\u2019t expect crude consumption to reach 2008 levels until 2013.\u00a0 OPEC\u2019s prediction manages to provide a starker image than the IEA\u2019s estimation last week of 2011-2012.\u00a0 Altogether, both OPEC and the IEA are indicating that the demand side of crude will likely take years to repair and restore to previous levels.\u00a0 Not only are we witnessing a drop-off in global production and manufacturing due to higher unemployment and lower consumption, but the U.S. and China are enacting aggressive policies to decrease their reliance on fossil fuels.\u00a0 Therefore, there are several factors impacting the demand side of crude.\u00a0 Weekly crude inventories came in just shallow of analyst expectations, but failed to have a positive impact on price yet again.\u00a0 Hence, fear of deterioration on the demand side of the equation is overpowering the consistent decline in U.S. stockpiles.<\/p>\n

Meanwhile, crude is finding intra-day support in the $60-$61\/bbl range as we anticipated, yet failed to stay above our 2nd tier uptrend line, a negative sign technically-speaking.\u00a0 Despite the intra-day stabilization, there continues to be a considerable downward pressure on price.\u00a0 Therefore, we could be in for a messy earnings season.\u00a0 If this is so, the $58-$61\/bbl range may only last a week or so.\u00a0\u00a0 Corporate earnings and 3rd quarter outlook should be a driving force for the near-term performance of crude and equities.\u00a0 If corporations project lower earnings, this implies a decline in production, manufacturing, and consequently overall consumption of crude.\u00a0 On the flipside, should corporations provide a rosy outlook for the upcoming quarter, crude futures could bottom and begin to rebound substantially.\u00a0 We can tell you crude futures are in a very vulnerable position, and the near-term potential remains for a more protracted selloff.\u00a0 The question becomes whether this is the worst if it, or just the beginning of a path towards a retest of the lows?\u00a0 We will closely monitor the developing situation.<\/p>\n

Present Price: $60.10\/bbl<\/p>\n

Resistances: $60.25\/bbl, $60.73\/bbl, $61.26\/bbl, $61.66\/bbl, $62.16\/bbl<\/p>\n

Supports: $59.69\/bbl, $59.17\/bbl, $58.90\/bbl, $58.55\/bbl, $57.87\/bbl<\/p>\n

Psychological: $60\/bbl<\/p>\n

\"\"<\/a><\/p>\n

Market Commentary<\/strong><\/em> provided by Fast Brokers<\/strong><\/span><\/a>.<\/p>\n

Disclaimer:<\/strong> FastBrokers\u2019 market commentary is provided for information purposes only and under no circumstances should be regardedneither as an investment advice nor as a solicitation or an offer to sell\/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.<\/p>\n

Risk Disclosure:<\/strong> There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Fast Brokers – Crude futures are continuing their brisk decline on rising volume today, entering the heavy-handed $60-$61\/bbl zone we mentioned in our previous analysis.\u00a0 Crude\u2019s declines are feeding off of quite a few fuels, the foremost being a report from OPEC saying they don\u2019t expect crude consumption to reach 2008 levels until 2013.\u00a0 … <\/p>\n

Continue reading “Crude Futures Log Further Large Declines”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-2871","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2871","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=2871"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2871\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=2871"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=2871"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=2871"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}