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31 Dec 2014
Crude declining, futures trading higher – MarketTeaLeaves
FXStreet (Barcelona) - Nick Mastrandrea of Market Tea Leaves, comments on the declining Crude and the gaining markets, further adding that the release of inventory numbers today should give the markets better direction.
Key Quotes
“As I write this the crude markets are declining and the futures are trading higher. This is normal. Crude and the markets are now reverse correlated such that when the markets are rising, crude drops and vice-versa.”
“Yesterday February crude dropped to a low of $53.33 a barrel. It would appear at the present time that crude has support at $52.69 a barrel and resistance at $54.56. This could change. We’ll have to monitor and see. Remember that crude is the only commodity that is reflected immediately at the gas pump.”
“On Monday, December 22nd OPEC reiterated their stance not to cut production. OPEC appears to be adamant about keeping production where it is as they believe that oil will rebound. What they haven’t figured out yet is that the more countries like Canada and the US produce their own crude (by whatever means) the more crude prices will fall.”
“If trading crude today consider doing so after 10:30 AM EST when the inventory numbers are released and the markets gives us better direction.”
“Crude oil is trading lower and the markets are advancing. This is normal. Crude typically makes 3 major moves (long or short) during the course of any trading day: around 9 AM EST, 11 AM EST and 2 PM EST when the crude market closes.”
Key Quotes
“As I write this the crude markets are declining and the futures are trading higher. This is normal. Crude and the markets are now reverse correlated such that when the markets are rising, crude drops and vice-versa.”
“Yesterday February crude dropped to a low of $53.33 a barrel. It would appear at the present time that crude has support at $52.69 a barrel and resistance at $54.56. This could change. We’ll have to monitor and see. Remember that crude is the only commodity that is reflected immediately at the gas pump.”
“On Monday, December 22nd OPEC reiterated their stance not to cut production. OPEC appears to be adamant about keeping production where it is as they believe that oil will rebound. What they haven’t figured out yet is that the more countries like Canada and the US produce their own crude (by whatever means) the more crude prices will fall.”
“If trading crude today consider doing so after 10:30 AM EST when the inventory numbers are released and the markets gives us better direction.”
“Crude oil is trading lower and the markets are advancing. This is normal. Crude typically makes 3 major moves (long or short) during the course of any trading day: around 9 AM EST, 11 AM EST and 2 PM EST when the crude market closes.”