Crude Oil Futures Long Positions has shruck as Fund managers flee

The Nov NYMEX Crude oil futures contract opened at $106.89, near the high, but closed down at $96.37, near the low ($95.04), on a couple of big factors, the first of which is imminent recession in the US.

The other is wholesale abandonment of the market by various fund managers. One Crude Oil Futures analyst said $85 million in long positions a month ago has shrunk to $8 million. But today Bloomberg reports thatoil rose as much as $2.93, or 3%, to $99.30 on expectations that Congress will take action tomorrow. Oil is $98.78 at 12:41 pm GMT.

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Barbara Rockefeller - Forex Trading Reports

Crude Oil prices stress the channel top on our chart

The Nov NYMEX oil futures contract opened at $107.70 on Friday and closed down at $106.89, but not before touching a high of $108.11. The week’s prices stress the channel top on our chart. Overnight, though, crude oil was nearly $3 lower at $103.94 in Singapore.

Bloomberg reports that Commodities fell, led by oil, copper and lead, on concern the U.S. plan to spend $700 billion propping up America's banks will fail to unlock credit markets and avert a slowdown in the world's largest economy. Crude Oil Futures, gasoline, heating oil, copper, lead, corn, soybeans, silver and rice all dropped more than 2 percent, leading the S&P Goldman Sachs Commodity Index to a 3.2 percent decline… ‘The fear is that the rescue package is not enough to stop the economy falling into a full-blown recession,’” said a German bank analyst.

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Barbara Rockefeller - Forex Trading Reports

Overall, commodity prices are recovering

The Nov NYMEX Crude oil futures contract opened near the low and closed at $108.02, near the high ($108.67). Conversely, gold opened at the high $891.50 and closed at the low ($877.70). What’s going on? Overall, commodity prices are recovering a bit but flat on the day yesterday—see the chart of the commodity price index.

Delay in passing the Paulson plan has been helpful to crude oil futures prices today (or rather, helpful to the dollar and to the consumer of oil)—the price fell to a low of $104.25 overnight and is languishing at $105.38 at 11:44 am GMT.

Buy for Now

Barbara Rockefeller - Forex Trading Reports