Wednesday, May 4, 2011

Crude oil will not fall apart (yet)

I find it ironic that on a day in which the overall commodity sector is getting slammed lower, crude oil simply refuses to fall apart. It is indeed lower but gives no chart signal as of yet that it has topped out. This is the ONE MARKET that the monetary officials are the most concerned about since it is the most visible one for impacting consumer disposable income.

WE had a report out today from the EIA (Energy Information Agency) that stated total US daily oil demand dropped 6.4% last week to a 17 month low of 18.3 million barrels. Included in their classification are even the minor products as well as gasoline, jet fuel and heating oil and diesel.

That is the biggest fall in a year. The soaring prices are indeed choking off demand but unlike the metals, crude has not fallen apart and broken down through its chart support levels.

We will need to watch this to see if it too eventually succumbs to hedge fund selling. Consumers of course would dearly love to see it fall as would the monetary authorities.

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3 comments:

  1. jake the snakeMay 4, 2011 at 10:26 AM

    could it be the support is due to the fact that dollars are priced in oil?

    ReplyDelete
  2. UnknownMay 4, 2011 at 11:20 AM

    I dare silver to drop below 38
    I Double Dog Dare silver to drop below 35
    ---------- be ready to buy Calls ------------
    Silver below 30
    Sell the house --- the car --- the wife --- the Dog --- Dump All Paper Contracts --- Load up on
    Physical Silver!!! ---- Maybe keep the Dog ----
    Smile ------------- Double you money in 3 months or less (it took 6 months on the last run up Nov 2010 Silver at about 20 until last week Silver at 49)

    ReplyDelete
  3. Yousaf MalanaMay 5, 2011 at 12:10 PM

    i am new and want to know how more the Oil will be fall down.

    ReplyDelete

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