Overview of the oil market for 19.01.10

Written by admin on February 12th, 2010

Dynamics
Quotes of the oil market Tuesday, January 19 on the basis of trading closed with the increase in value against positive dynamics of equity markets and adjacent areas, but also because of technical reasons.

At the New York Stock Exchange NYMEH the February futures price of U.S. light crude rose by 1.02, or 1.3%, and its price was 79.02 dollars per barrel.

Causes
Tuesday, January 19 quotes on the market of "black gold" were closed with an increase in price by the following factors: 1 - Strengthening the stock sites, where U.S. stocks rose, restoring the loss last week, as the equities of the health sector sharply increased (after the declarations of the Republicans is that they block the revision of this industry, if you win elections in the U.S. Senate), while technology companies have grown in relation to the optimistic expectations of earnings (Dow Jones industrial average - 10725.43 (115.78, or 1.09%) Nasdaq Composite - 2320.40 (32.41, or 1.42%), SP 500 - 1150.23 (14.20, or 1.25%)), 2 - positive dynamics of the neighboring markets, namely the strengthening of prices for precious metals and 3 - the technical reasons - the price of oil fell to 1.6% to 76.76 dollars per barrel, its lowest level since December 23, with the attainment of this minimum has provided an ideal opportunity to purchase for some investors, while traders covered short positions, re-buying previously sold contracts, and prices market grew. Organization of Petroleum Exporting Countries (OPEC) said Tuesday that oil prices are still vulnerable to seasonal weakness in demand. This has increased expectations that the group will keep its oil production quotas unchanged at its March meeting.

What to expect?
The main event of today"s trading session is out of data on stocks of petroleum and petroleum products from the U.S. Department of Energy, which can set the future direction trading. Market participants expect to reduce stockpiles of distillates, but at the same time, expect growth stocks of gasoline and crude oil. Among distillates include heating oil and diesel fuel.

Why worry?
The main negative factors in the oil market are U.S. dollar and the technical picture, namely, the psychological and technical level of 85 dollars per barrel, which does not allow to pass higher oil prices, thereby encouraging market participants to lock in profits on the open long positions.

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