Crude Oil gained for the 1st day in 4 in New York after a surprise drop in US Crude stockpiles led investors to reduce bets that prices would continue to decline.
Futures rose as much as 3.7% after falling 8% in the past 3 days. Crude Oil inventories dropped 3.07-M bbls last week, the American Petroleum Institute said, An US Energy Department report today is forecast to show a gain of 1.5-M bbls. Traders holding Short positions in Crude Oil futures, or bets that prices will fall, must buy back contracts to book profits. With so many short positions around anything can spark a Strong rally.
Crude Oil for November delivery rose as much as 2.79 to 78.46 bbl and was at 77.59 at 9:51 am Singapore time.
Futures Tuesday declined 2.5% to 75.67, the lowest settlement since September 23, 2010. Crude Oil is down 15% this year.
Brent Crude Oil for Nov gained 1.56, or 1.6%, to 101.35 bbl on the London-based ICE Futures Europe exchange. The European benchmark contract was at a premium of 23.76 to US futures, compared with a record close of 26.87 on September 6th.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.