| 29 July 2010 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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This Market Briefing was written by Oil Market Analyst, Thorbjorn Bak Jensen | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Trends | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trading USD 3 higher       Expected to open USD 3 higher  Sell-off compensated by technical buyingOil plummeted over $1/barrel during intra-day trading as US Beige Book, durable goods order and EIA oil inventory figures came out worse-than-expected. Technical buying just above the strong support of $75/barrel helped to recoup some of the losses. Another important earnings day aheadMajor companies such as Exxon, Shell, MAN, Southwest Air, Noble Energy are to report their Q2 earnings today. Lately, daily return correlation between oil and S & P500 increased to over 80% as speculators try to judge the health of economy with earnings instead of inconsistent fundamentals data. Thus, oil prices might be supported in the short-term if companies keep posting positive earnings even if fundamentals remain weak.     High volatility expected during hurricane seasonToday's important numbers include German unemployment figures, Eurozone consumer/economic/ business/industrial sentiments and US initial/contingent jobless claims. RecommendationPrices bounced back after hitting the strong technical support of $75/barrel once more. 200-day moving average of $77.5 presents a resistance on the upside. We recommend monitoring the market for dips towards $75/barrel to hedge future exposure after US jobless claims figures.  
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  Oil prices still increasing - but at a lower pace.....Did you read The Oil Market - Quarterly Outlook July 2010 yet? It gives you an on the current and future situation on the oil market and oil prices - click here to read more |
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