♦ Nymex crude oil closed above $75 a barrel, traded between $72-75. Crude oil rose for the third consecutive day after comments made from Fed Chairman Bernanke.
♦ The dollar closed a little lower and the Dow Jones closed higher gaining over 170 points.
♦ Fed Reserve Chairman Bernanke spoke today at its annual retreat in Wyoming saying "The committee is prepared to provide additional monetary accommodation through unconventional measures if it proves necessary, especially if the outlook were to deteriorate significantly.”
♦ U.S. Commerce Department reported that 2Q GDP slowed to a 1.6% annual rate from 2.4% in its last report. The downward revision was due to higher net export deficit and smaller gain in inventories.
♦ U.S. consumer sentiment rose to 68.9 in August from 69.6 from its last report, in-line with expectations.
♦ Baker Hughes Inc. says the number of U.S. rigs increased for the 12th straight week by 5 to 1,656 active rigs. The number of gas rigs rose by 12 to 973 and the number of oil rigs rose by 17 to 672 units. Offshore drilling rigs fell by 1 to 20 active units.
♦ CFTC reported this afternoon showing money managers have decreased their net long positions in crude by 32,431 contracts to 82,024 contracts on the Nymex exchange. Commercial traders have decreased net short positions by 8,660 contracts to 201,938 contracts. CFTC also reported that money managers have decreased net short positions in natural gas by 1,835 contracts to 12,352 contracts.
♦ NHC says hurricane Danielle has strengthened into a Category 4 storm located about 480 miles southeast of Bermuda, expected to miss the oil & gas production in the Gulf. NHC also says tropical storm Earl could become the season’s third hurricane by Sunday and could reach Category 3 strength, located about 1,300 miles east of the Leeward Islands. NHC is also
tracking a third system in the eastern Atlantic giving a high 70% in developing into a tropical depression in the next 48 hours.
♦ A reminder, Nymex September RBOB and heating oil futures contract will expire next Tuesday.

Crude Oil:

Crude closed $1.81 higher gaining over 2.4% today closing the week higher. Crude rallied for the third straight day after positive comments from Fed Chairman Bernanke. Support level will move to $70 and resistance will also move to $80 for the moment. Chart pattern remains have changed direction to the top-side breaking its recent highs. Indicators have also rebounded off oversold levels ahead of the weekend. Best opportunity is to day-trade as the U.S. driving season nears the end. Also, use stop orders to limit the risk.