SINGAPORE (Reuters) - Oil prices moved higher on Thursday, recovering some of the week's sharp losses ahead of U.S. data expected to show heavy falls in crude and product stocks due to disruption from Hurricane Katrina. U.S. light crude rose 61 cents to $64.98 a barrel by 0728 GMT, after plunging $1.59 on Wednesday. The market has fallen 8 percent from a record $70.85 last week, after industrialised nations began to tap emergency reserves. London Brent crude rose 59 cents to $63.48 a barrel. Traders are looking to U.S. government data on oil stocks due later on Thursday for further direction on the damage to the U.S. oil industry, after the storm rampaged through the Gulf of Mexico last week. Analysts surveyed by Reuters forecast a 6.4 million-barrel drop in weekly crude stocks, which would still leave them well above year-ago levels. The figures come a day later than usual because of a U.S. holiday. Gasoline stocks were expected to fall by 6.2 million barrels and distillate fuels including diesel and heating oil by 2.6 million, as the hurricane forced the domestic industry to draw heavily on inventories. "We will see the bullish stats, which will show the effects of the hurricane on U.S. crude and product stockpiles, so I believe prices will rise from here," said Naohiro Niimura, of Mizuho Corporate Bank. I take it as a bounce, and then another decline to the $60 - $61 Tony
looks like a small gap on the charts was filled in OCT Crude ... lets see what happens after the API#'s come out
We're looking at similar things. The big question is, is oil ready for another big bounce now after the Dow gained almost 200 points in the week or will it go all the way to 60-61 while the Dow goes all the way to 10700?
Crude moved successfully over the 6 hma on the 15 minute bar chart. First time since it gapped down last friday. A counter trend rally to $66.50 next? Hate to see what that would do to stocks. They look spooked again by the moves in crude. Tony http://spaces.msn.com/members/caldaroEW/
The intraday low of $63.10 for CLV5 looks like the bouncing point. Now would be a good time to hedge long stocks and long dollar positions with a long crude position.
Hammer on the oil daily chart could indicate a bottom. The low for the day tagged the lower band, another bullish sign. Careful: oil is EXTREMELY volatile right now.
I agree. The proportion of oil contracts in a portfolio of indices and commodities must be smaller because of the extreme volatility.