November crude oil prices grinded higher during the overnight and initial morning hours but remained trapped inside of yesterday's trading range. Early support for the crude oil market came from a surprise interest rate cut by the Reserve Bank of Australia, as well as growing talk that Spain could be closer to requesting an EU bailout. The US dollar was under modest pressure and global equity markets were higher, offering a measure of support to the crude oil market. It also seems that the crude oil market has drafted support on the hopes that yesterday's better than expected US manufacturing data is the start of a new trend toward improving economic conditions. While that remains to be seen, concerns over slowing global growth remain a dominant headwind in the crude oil market. Meanwhile, lingering Middle East tensions pose supply disruption threats, and that is a factor that appears to be limiting the downside in the market. Reports earlier this morning out of Russia indicated that there September oil output climbed to fresh record high level, and that is a modest negative for the market to start this morning. The price action in November crude oil appears to be correcting the September downdraft with a low-volume grind higher. While the near term trend in the market favors the bull camp, with support at $91.59, the intermediate term trend points down. Near term resistance today comes in at the $93.30 level.
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