Crude oil accelerated more than 10 dollars to $82 a barrel mark to almost six-week high on optimism about the pace of global economic recovery and as cold weather across the United States boosted fuel demand.

Stunning records for cold were set across the nation, increasing the
demand for heating fuels as the first seasonal wave of cold weather
hits the Northeast and Midwest. The IEA, which advises 28
industrialized economies, said in a monthly report that it had
increased its global oil demand growth estimate for 2010 to 1.42
million barrels per day, up 150,000 bpd from its previous projection.

Moreover oil producer group OPEC also raised its forecasts for world
demand, predicting an average 28.39 million bpd next year, up 300,000
bpd from its previous forecast.

Elsewhere OPEC seaborne oil exports, excluding Angola and Ecuador, are
expected to rise 90,000 barrels per day in the four weeks to Nov. 7, as
British consultancy Oil Movements, said in its latest weekly estimate.

As per expectations, Crude oil was able to build ground at $65/bbl (its
200 Day EMA) last month and has thus appreciated quite steeply this
month gaining around 20%. It has made a gradual transition from
$60-70/bbl to levels of around $81.99/bbl.

At present levels of around $80/bbl, the counter still looks promising,
as is depicted by the upward sloping trend channel, engulfing the whole
move and setting higher targets as well of around Rs3950-4000/bbl in
coming days.

The only clause is the level of $82/bbl in Nymex and Rs3800/bbl in MCX
which is restricting upside at the moment(as there have been three
failed attempts to cross that) , and can result in a corrective phase
due to profit booking setting in after the recent rally.

It seems bears can push it lower only to be supported by Rs3550 and
then by 3450/bbl in MCX and $75/bbl-$73/bbl zone in Nymex, so traders
are advised to act accordingly.

Source: Commodity Online

Search to find what you want

• Europe Oil Products Gas Bargen rise to 6-month high

    Gas oil barge differentials rose on Friday and were offered at premiums of $3 to ICE gas oil futures as the cold snap behind the boost in heating demand looked set to prevail for at least another 10 days.? Gas oil differentials have briefly turned positive this week for the

• Lift demand for oil from the icy weather was not a sure thing

    Shouldn’t a cold Northern Hemisphere winter give oil demand, struggling to recover from recessionary doldrums, a huge lift? Maybe not.

• OPEC: cold weather can trim Middle Distillate Glut

    Refiners may get some relief from cold winter weather, which will trim help to trim an oversupply of middle distillate oil products, the Organization of Petroleum Exporting Countries said Tuesday. “A cold snap along with increasing seasonal demand and stock draws have underpinned product market sentiment and lifted the crack

• Oil climbs above $ 75 in Asian trade

    Global oil prices rose for the fifth day in succession Wednesday and climbed above $75 a barrel in Asian trade mainly on a weak dollar and optimism over a global economic rebound. Light sweet crude for November delivery was seen trading at $75.10 a barrel at 12.00 noon Singapore time while

• Oil rises near $ 74 as traders eye OPEC, demand

    Oil prices rose to near $74 a barrel Friday amid expectations OPEC plans to leave production levels unchanged at its meeting next week. A slightly weaker dollar and cold weather on the U.S. East coast also helped support prices.

• U.S. coal consumption by 3pct WoW – Genscape

     Genscape said that US consumption of coal declined 3% from the previous week and was 16% below the same week last year. Genscape said that in the East, coal consumption for the week ended July 23 also dropped by 3% from the previous week and 18% from the same week a

• U.S. coal consumption by 3pct WoW – Genscape

     Genscape said that US consumption of coal declined 3% from the previous week and was 16% below the same week last year. Genscape said that in the East, coal consumption for the week ended July 23 also dropped by 3% from the previous week and 18% from the same week a

• Crude oil averaged $ 80 per barrel in 2010 – EIA

    West Texas crude-oil prices, which averaged about $62 a barrel last year, will average about $80 this year and about $84 in 2011, the Energy Information Administration said Tuesday in its monthly short-term outlook. “The world oil market should gradually tighten in 2010 and 2011, provided the global economic recovery

• Great season for ice fishing

     (wickedlocal) Ice fishermen haven’t been complaining about the cold weather and neither are bait-and-tackle shop owners, who say business has been great. Shiners are the most popular bait and they are selling loads of them.  Source

• U.S. coal-burning flat after week – Genscape

    U.S.

• Nigeria, United Arab Emirates OPEC crude oil production supplies set opener

    As non-Organisation of Petroleum Exporting Countries (OPEC) oil supply experienced a minor decline of 90 thousand barrels per day (tbd), and OPEC crude increased slightly, it is on record that the wake of the preliminary figures indicated that global oil supply remained steady last month from the previous month to

• Genscape U.S. burn coal rises 4 percent for the week

    U.S. coal consumption rose 4 percent over the previous week and was 7 percent greater than the same week last year, the third weekly uptick in a row, Genscape said Friday. But the outlook for miners is still somewhat dodgy, Genscape said. In the populous East, consumption for the week ended

• Oil falls to near $ 81 on reports of warmer weather

    Oil prices fell to near $81 a barrel Tuesday on expectations a frigid cold spell in parts of the U.S., Europe and Asia will ease in coming weeks, weakening crude demand. By early afternoon in Europe, benchmark crude for February delivery was down $1.16 cents to $81.36 a barrel in

• Natural gas gains in New York as the economy better demand signals

    Natural gas futures advanced in New York on anticipation demand for the industrial fuel will rebound after the U.S. economy expanded in the fourth quarter at the fastest pace in six years. A recovery at factories will help to lift use of natural gas, which relies on industry for 29

• China December imported coal at a record high 16.4 million tonnes – Sources

    China’s coal imports leapt to a monthly record of 16.38 million tonnes in December, up 29.5 percent from November, sources said on Monday. “December imports were 16.38 million tonnes,” said one industry source who had seen figures from China’s customs office, which are not due to be published until Thursday.