Oil falls as economic crisis deepens Wire services Oil fell by more than $1 in early trade today after weak export data from Japan, and as investors paused to reassess bank clean up plans, halting a global equities rally. Japan, the world's second-largest economy, posted a record drop in February for exports - down by 49.4% - as global demand for Japanese cars and electronics evaporated. Bearish supply and demand data in the US and in third-largest consumer Japan also pushed prices lower. US light crude for May delivery fell $1.08 to $52.90 a barrel by 1055 GMT, after touching a near three-month high above $54 on Tuesday. London Brent crude fell $1.02 to $52.48. US crude inventories rose last week by 4.6 million barrels to 345.5 million barrels, data from industry group American Petroleum Institute showed on Tuesday, with imports rising and refinery utilisation down. In Japan, crude oil import volumes fell by 13.9% in February, their lowest tally for the month in 20 years, preliminary data from Japan's Ministry of Finance showed. "The Japanese numbers certainly spooked the market," Rob Montefusco, a commodities trader at Sucden Financial in London, told Reuters. "Crude numbers for the API data were bigger than expected, and we're looking for the DOE numbers today to be higher. The market is on the back foot at the moment," he said. Today European stocks were little changed in early trade after four days of gains, as investors turned cautious ahead of key macroeconomic data and after sharp gains sparked by a US plan for banks' troubled assets. The US Energy Information Administration, a branch of the Department of Energy, will issue its separate weekly report on nationwide stockpiles later today. On Tuesday night iUS President Barack Obama said he was seeing signs of economic progress in the housing market as he sought to reassure Americans he was on the right track. Speaking with cautious optimism today, a Chinese central bank adviser said China, the world's third-largest economy, was showing signs of improvement. "Before (the economy) bottoms out, it has to bottom. I believe it has bottomed, with the stimulus package and signs of recovery in some industries," said Fan Gang, who sits on the Chinese central bank's monetary policy advisory committee, in a Reuters interview in Hong Kong.
you sold the close mate?? I contracted EtxCapital btw and asked them if they could change their company to offering 24hour trading, and they said from after the easter weekend they will have done it for oil so i can trade it 24hours. I do just ahve to say that this is EXTREMELY great nice service from them, and o i would honestly highly recommend them to anyone looking for a new sb firm.
I have not sold yet no. This is a medium term trade i am looking for which may be held for a couple of weeks or so. I would like to sell now but am conscious there will be technical support around 5020-5080. So may look to sell a retracement after a break back into the 33-50 range.
you think we wil get that low mate, even with the dollar stength cos the fed's treasury buying spree meaning that oil has basiclaly been revalued?? you had a good day today also mate?
I'm too busy at work for inter-day stuff. I think it will drop back into the 33-50 range and trend down. How much has the dollar actually lost? Not very much. The dollar index has lost c 2 points since the FED announcement which under 2.5%. It looks to be strengthening and the EURO rally appears to be waining forming a reversal pattern. The stock index rally will eventually retrace or consolidate but more importantly demand is looking increasingly weak. Stockpiles are now at multi-year highs and the Japanse collapse is very bearish. Unless OPEC cut further, the market still seems over supplied. I am not a fundamental trader as such and will always follow the chart but the demand picture appears so bad.
Oil's peaking through 53.00 right now, so I'm thinking it's getting bullish again. I noticed it's the third day we've failed to break through 54.00 (I made a chart!). Now, even though demand is still very low, I think oil traders are looking way ahead into the future, believing the worst of this crisis is behind us. To me, it looks like we're going to break through the 54.00 mark overnight and spike up tomorrow, before retracing at all. I'm not really a TA or fundamental trader (my knowledge very basic). I've been scalping for about a year now, so generally ignore trends and news. But it's stressful, and everytime I hit a stop I get closer to that point where I start pulling stops and start averaging everything (and praying, and usually erasing weeks worth of work, it's a miracle i'm still trading). So I want to start catching some moves, either overnight or waiting patiently during the day. Anyways, what does everyone else think oil is doing?