April 12, 2011, 11:06 a.m. EDT Oil drops more than 3% on demand fears International Energy Agency: High prices denting demand growth By Claudia Assis and Polya Lesova , MarketWatch SAN FRANCISCO (MarketWatch) â Crude futures stumbled more than 3% Tuesday as U.S. equities traded sharply lower and a rash of pessimistic views on U.S. economic growth after weak trade data raised fresh doubts about oil demand. Light, sweet crude for May delivery (NEW:CLK11) fell $3.50, or 3.2%, to $106.40 a barrel on the New York Mercantile Exchange. Prices have fallen more than $6 a barrel since Friday. On Monday, the contract dropped 2.5%, its biggest one-day percentage decline in a month. U.S. trade activity softened in February, the Commerce Department estimated Tuesday. Read more about trade activity in the U.S. That led several economists to lower their estimates for first-quarter U.S. growth, affecting crude prices as reduced economic activity translates into less need for oil. Moreover, in its monthly report released Tuesday, the International Energy Agency said preliminary data for January and February suggest that âhigh prices are already starting to dent demand growth.â The IEA also said global oil output fell by 700,000 barrels a day to 88.3 million barrels a day in March on reduced Libyan crude supply. Oil-rich Libya has been torn by violent political unrest in recent weeks. A cease-fire deal reportedly brokered by the African Union with embattled leader Col. Moammar Gadhafi was rejected by rebel forces Tuesday. Libyaâs rebel leadership refused to agree to the peace proposal because it did not provide for Gadhafiâs departure, according to reports. Meanwhile, IG Markets strategist Ben Potter said the drop in oil prices came after the International Monetary Fund cut its estimate of gross-domestic-product growth for the U.S. and Japan. Potter also cited a note from Goldman Sachs as a drag on oil prices. In a note to clients, Goldman analysts advised investors to close out of some commodities trades, and they said they expect Brent crude futures to drop to $105 in the near future. Even with the loss of Libyan production, the oil market has âadequate inventoryâ and spare production to avoid a repeat of tightness seen in 2008, the Goldman analysts said. Brent for May delivery retreated $3.39, or 2.7%, to $120.59 a barrel on ICE Futures in London. âNot only are there now nascent signs of oil-demand destruction in the U.S., but also the record speculative length in the oil market, elections in Nigeria and a potential cease-fire in Libya that has begun to offset some of the upside risk owing to contagion,â they added in a note released Tuesday.
I had a counter-trend swing trade once on a stock where I came to that realization $6500 red dollars later :eek: For all you counter-trend traders who know that price reverts to the 20 EMA 100% guaranteed, your 100% guarantee is now being realized! ADD: That moving average definitely can move, though.
thats about the California average http://www.eia.doe.gov/oil_gas/petroleum/data_publications/wrgp/mogas_home_page.html
At BE now Close, Reverse or Hold? Ok, stop at BE, after taking soooooome heeeeeeat Kid, what do you still think of targeting 107.91?