As promised to Red-Hot Commodity ETFs subscribers, here is a chart of crude oil. Note that this is a weekly chart.
As I expected, crude oil has closed over $75 a barrel. This is bullish. It was helped by the release of the full minutes of the September 22-23rd FOMC minutes, in which some FOMC members were willing to boost purchases of mortgage-backed securities. This would be a second round of quantitative easing, and was seen as dollar bearish. The dollar tanked, oil went higher, and gold briefly went positive before closing slightly down.
Then, after the crude market closed, the American Petroleum Institute (API) released its weekly report that was MUCH more bullish than expected.
According to the API, crude oil stocks in the United States fell 172,000 barrels in the week to Oct. 9. On average, crude stocks were forecast to have risen 700,000 barrels.
Meanwhile, gasoline stocks fell 2.7 million barrels last week, API said. They were forecast to have risen 800,000 barrels.
So, this is putting a bid in both crude oil and oil industry stocks. All eyes will be on the EIA report on Thursday. Often, it seems like the EIA and API reports come from different planets — we’ll see what happens this time around.
I’ll have a column for UncommonWisdomDaily.com on Friday that will focus on oil. Red-Hot Commodity ETFs subscribers, you should are already poised for big potential gains. Red-Hot Global Small-Caps subscribers, be aware that I’m looking at some picks for your portfolio and may fire off a new issue for you on Thursday.
Related Posts
- Latest Chart of Crude Oil (08/28/09)
- Bullish Dollar has Stocks and Commodities on the Run (06/15/09)
- Two Bullish Pieces of News (03/18/10)
- Thursday Charts — Crude Oil and More (05/14/09)
- Is Oil Breaking Out? Check Out This Chart (05/06/09)
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