I am taking a break from oil right now. Target acheived for the day. Will be looking for 100% safe entries after 2-3 hours
OIL bear cases: EIA confirmation later today, tomorrows expected 2 mil builup .. Bull cases: stength equity markets , economy recovery hopes .. 1) The crude oil market has shown impressive resiliency to negative news and it is a bit surprising to see the market hold above the $50 per barrel price level in the face of ballooning supplies and sinking demand. 2) With the IEA predicting a 2.4 million barrel per day decline in global oil demand this year, it will certainly be a test of the bull camp's resolve if the EIA makes a similar downgrade in oil demand in their report expected to be released later today. 3) Other stumbling blocks for the bull camp will include expectations for this week's inventory report to show another sizable build in crude oil stocks of over 2 million barrels since it could leave stocks at nearly 19 year highs. Economic optimism fostered by gains in global equity markets overnight gives the bull camp some early leverage. But the bulls resolve could be tested today with key economic news and more corporate earnings announced today. The EIA will also release its latest global oil demand forecast which also has the potential to dampen sentiment.