All around the world crude prices are surging to their highest ever. Oil almost breached the 110 dollars per gallon due to the fear of supply concerns and the weakened dollar. Crude prices are gaining momentum as a result of investors investing hedging inflation and the depreciating dollar against all major currencies. As the US trade balance came out yesterday, it showed that the trade deficit had widened leaving oil prices rallying. With the goods news of the Feds pumping money worth $200 billion in the US economy to help with the current recession will help ease crude prices but at the same time would eventually add to inflationary pressure and depreciate the dollar. Still yesterday's contract gained $.85 to close at $108.75 per barrel reaching a low of $106.61 per barrel and a high of $109.72 per barrel. Finally, the dollar is gaining its strength again for now as the Federal Reserve, ECB, BoE stated that they are joining other central banks to provide assistance in the credit crisis. As this announcement was made, crude prices are at last steady. In addition to the Feds working on saving the US from going into further recession, the global stock markets are recording gains they have not recorded five years in a row, which will keep oil prices steady for now. Today the contract opened at $108.65 per barrel reaching a high of $108.90 per barrel and a low of $108.32 per barrel. The EIA report coming out today is expected to show that US crude inventories will grow by 1.6 million barrels. As for gasoline stockpiles will also grow by 300,000 barrels and distillates stocks which include diesel fuel and oil will fall by 2 million barrels. Keeping in mind that the EIA will show an increase for crude inventories might hopefully lower crude prices due to the fact that the US is the world biggest oil consumer.

Resistance108.90 109.70 110.50 111.54 112.50