♦ Nymex crude oil closed above $75 a barrel, traded between $73-75. Crude oil rose for the
second consecutive day after supplies concerns in the U.S.
♦ The dollar closed a little lower and the Dow Jones gained about 35 points for the day.
♦ U.S. Labor Department released data showing initial jobless fell by 6K to 172K, the second biggest decline for the year. Continuing jobless claims also fell by 23K to 4.456 mln. The unemployment rate for insured workers remained unchanged at 3.5%.
♦ U.S. pending home sales rose by 5.2% in July, the first increase in 3-months reported by the National Association of Realtors.
♦ ECB announced that its interest rate will remain at its record lows at 1.0%. ECB President Trichet says the ECB will keep offering banks unlimited 1-week and 1-months loans until January 2011.
♦ U.S. Coast Guard reported an explosion on a offshore oil rig owned by Mariner Energy Inc. Explosion is located about 90 miles off the Louisiana coast and about 13 oil workers were on the platform.
♦ Brazil’s Petrobras Brasileiro SA agreed to pay $42.5 billion to the government for the rights to develop 5 billion barrels of offshore oil reserves to an average of $8.51 per barrel after 2-weeks of negotiations.
♦ NHC reported that hurricane Earl is expected to pass North Caroline’s outer banks tonight, but landfall is not expected. Earl is located about 245 miles south of Cape Hatteras, NC and about 100,000 people were evacuated from the area. NHC also reported tropical storm Fiona located about 520 miles southeast of the Bermuda, expected to follow hurricane Earl’s path and will not strengthen into hurricane status. NHC – tropical storm Gaston located about 1,015 miles southwest of Cape Verde Islands and may weaken into a depression.
♦ A reminder, Nymex floor trading will be closed on Monday due to U.S. Labor Day holiday.

Crude Oil:

Crude closed $1.11 higher gaining over 1.5% today. Crude closed higher after another oil rig explosion in the Gulf of Mexico, speculating regulations will tighten in the U.S. 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 and prices may chop around at these levels. Indicators have rebounded off oversold levels as volume starts to pick up. Best opportunity is to day-trade as the U.S. driving season nears the end. Also, use stop orders to limit the risk.