♦ Nymex crude oil closed below $72 a barrel, traded between $71-74. Crude oil fell for the second consecutive day after signs of economic growth to slow.
♦ The dollar closed a little lower and the Dow Jones also closed higher gaining about 35 points.
♦ Chicago PMI reported at 56.7 in August down from 62.3 in July, the slowest rate this year.
♦ U.S. Consumer Confidence was also released today showing at 53.5 in August from 50.4, inline with expectations and rebounding off 5-month lows.
♦ Japan’s total oil product sales rose 4.6% in July compared to a year earlier, the first increase in 3-months reported by the trade ministry.
♦ Turkey’s gas pipeline from Iran is expected to be back online by Friday or Saturday.
♦ Mastercard stated today that U.S. retail gasoline demand fell 3.1% last week. Gasoline demand averaged 9.17 mln bpd, up 0.7% compared to last year. U.S. retail gasoline prices at the pump fell 4 cent to $2.68 per gallon.
♦ American Petroleum Institute reported a build of +4.765 mln in crude, a build of -1.86 mln barrels in distillate, a build of -0.589 mln in gasoline and refinery capacity at 84.8%.
♦ NHC says hurricane Earl has strengthened into a Category 4 storm located about 1,040 miles west of Cape Hatteras, NC and threatens North Carolina’s outer banks by Thursday. NHC also reported tropical storm Fiona located about 335 miles east of the Leeward Islands, expected to follow hurricane Earl’s path. NHC is tracking a third system in the Atlantic located about 400 miles southwest of the Cape Verde Islands, forecasting a 10% to become a storm in the next 48 hours.
♦ A reminder, EIA will release its petroleum inventory report tomorrow at 10:30AM EST.

Crude Oil:

Crude closed $2.78 lower losing over 3.7% today. Crude lost over 9% this month, the largest monthly lost since May after speculation that demand will curb. Support level will stay at $70 and resistance will also stay at $80 for the moment. Chart pattern couldn’t confirm last week’s bull trend as traders look to take profits ahead of EIA report. Indicators have also rebounded off oversold levels creating a U-shape formation. Best opportunity is to day-trade as the U.S.
driving season nears the end. Also, use stop orders to limit the risk.