Overview:

Crude followed the decline in the equity markets with some US dollar strength adding to the late session weakness. Considering the last few weeks pattern the move was also driven by a rather bearish EIA report: despite a significant crude stocks draw the rest of the products showed a much larger than anticipated increase in inventories noticeable gasoline. The much awaited Fed statement emphasized the likelihood of a prolonged period of weak global economy delivering a further blow to the early gains in crude. And still the loss in crude was rather minimal.

9 day moving average - $69.49 14 day moving average - $70.06 40 day moving average - $64.12

Technical Report:

Initially crude moved higher reaching an intraday high of $69.90 and it seemed that bulls would enjoy further breaks above the $70.00 mark. However it did not happen as the 9 day moving average proved to be good resistance level and failure to breach it was quickly followed by a retracement. So overall, crude declined 28 cents to settle at $68.37 in a choppy trading session which felt more like consolidation.

The short term trend is sideways the medium term trend is bullish while the long term trend is bearish.

WTI:

Support: $68.07 (yesterday's low) Resistance: $70.69(high of 09/06/09)

Support:$66.67 (low of 22/06/09) Resistance: $70.21(high of 22/06/09)

Support:$66.26 (low of 23/06/09) Resistance: $69.90(yesterday's high)

OIL (BRENT):

Support: $67.58 (yesterday's low) Resistance: $70.06 (high of 09/06/09)

Support:$66.12 (low of 22/06/09) Resistance: $69.62 (high of 22/06/09)

Support:$65.90 (low of 23/06/09) Resistance: $69.31 (yesterday's high)

DOE Stock Figures (change in millions of barrels)

Crude -3.8 (-1.4) Distillates+2.0 (+0.8) Gasoline +3.8 (+1.6)