post #601 of 781
10/16/09 at 6:57am
IMO King Dollar being turned into a pumpkin has more to do with WTI than anything right now, with all the talk of trading oil in a currency basket moving forward feeling like it has a lot to do with the dollar devaluation. I flipped UCO from PM 13.8x to 14.0x, small beans but it woulda been smaller in USO. I don't like USO at all, and will only day trade the oil issues unless there is a specific news event breaking or imminent that may set up a probable multi-day rally... and I don't trust UCO half as far as I can throw it. Leveraged, ETF, contango, you name it.
|NEW YORK (MarketWatch) -- Crude-oil futures rose Monday for an eighth straight session, ending at a new one-year high near $80 a barrel as a weaker dollar and rising U.S. stocks stirred more bullish sentiment among energy traders.
Crude for November delivery gained $1.08, or 1.4%, to $79.61 a barrel on the New York Mercantile Exchange, the highest settlement for a front-month contract since last October.
Crude for December delivery, which registered higher volume, gained 1.2% to $79.96 a barrel.
"Oil has broken out," said Phil Flynn, vice president at futures trading and research firm PFG BEST Research, adding that the $80 level could be soon reached.
Oil rallied 9.4% last week, the biggest weekly gain in two months. It has gained 14% in the eight sessions starting Oct. 8.
Oil traders are betting that "positive third-quarter results in the U.S. corporate sector and better U.S. housing market data continue to fuel economic optimism," wrote analysts at Commerzbank in a note to clients.
"Should the markets be disappointed, however, an oil price correction is likely," they said, adding that the later stage of the rally in oil has mostly been driven by speculators.
China, the world's second biggest oil consumer, saw economic growth at an estimated rate of 9% in the third quarter, a research department of the country's State Council said Monday. That's up sharply from 7.9% growth in the second quarter and 7.1% over the first half of the year, according to the official Xinhua news agency. See full story.
In the U.S., industrial production increased at an annual rate of 5.2% in the third quarter, the fastest growth in four years and the first quarterly increase since the recession began late in 2007.
Positive economic news typically boosts oil prices, because it raises expectations for a swift economic recovery and a rebound in energy demand.
In other energy trading, November reformulated gasoline gained 0.4% to $1.9872 a gallon and November heating oil added 1.1% to $2.0522 a gallon.
November natural-gas futures rose 1.1% to $4.835 per million British thermal units.
The United States Oil Fund /quotes/comstock/13*!uso/quotes/nls/uso (USO 40.80, +0.35, +0.87%) gained 0.8%, and the United States Natural Gas Fund /quotes/comstock/13*!ung/quotes/nls/ung (UNG 11.69, +0.12, +1.04%) rose 1.2%.
something interesting about oil from bloomberg.com....
Oct. 22 (Bloomberg) -- Oil is “too cheap” and should rise to $88 a barrel in coming months after the dollar’s decline against the euro, a DekaBank study suggests.......A euro-dollar rate of $1.55 would push oil to $96 a barrel, the DekaBank study shows. A rate of $1.40 would imply a crude price of $74, according to the study.
I have a Civic and a 328is...the MPG may very well decide which one I sell. LOL. 32mpg or 20mpg city...hrmmm. But the Bimmer is so sweet damnit.
Originally Posted by amohedas
Watch for the breakout above $80.
That's the one I was looking at but maybe a xi. Probably get in after the winter.
I agree, I think the USD is the key if it breaks below the 74.50 mark watch oil pop.