♦ Nymex crude oil closed near $74 a barrel, traded between $72-74. Crude oil fell for the second consecutive day after the euro fell against the dollar, speculating that EU’s banking sector may worsen.

♦ The dollar closed higher gaining 1% and the Dow Jones closed about 100 points lower.

♦ Germany’s factory orders were released today and reported an unexpected decline of -2.2% in July, the biggest decline in 17-months.

♦ Germany’s banking association says that 10 of its largest banks will need to raise $105 billion euros ($134 billion U.S.) in new capital due to new regulations. The higher capital requirements will be proposed tomorrow by the Basel Committee on Banking Supervision.

♦ Mexico - Pemex’s Cadereyta plant reported an explosion at one of its major refineries in northern Mexico. At least 1 confirmed dead and 5 seriously injured. Refinery capacity was about 275,000 bpd and speculation that the country will increase imports. Mexico imported
about 432,000 bpd of fuel from the U.S. in June.

♦ EIA reported that average gasoline prices in the U.S. remained unchanged at $2.682 a gallon, up 0.094 cents from a year ago. EIA also reported that average diesel prices fallen by 0.007 cents to $2.931 a gallon, up 0.284 cents from a year ago.

♦ NHC says tropical storm Hermine has made landfall near northern Mexico located about 50 miles west of Corpus Christi, Texas causing 8 inches of rain expected to weaken and will not disrupt production. NHC also reported that tropical storm Gaston is located at the Leeward
Islands forecast a low 20% in strengthening again into a cyclone. NHC is tracking a third system about 350 miles west of the Cape Verde Islands forecast a 10% chance to develop in the next 48 hours.

Crude Oil:

Crude closed 51 cents lower losing about 0.7% today. Crude closed lower after the euro fell against the dollar speculating that energy demand will also fall. Support level will stay at $70 and resistance will also stay at $80 for the moment. Chart pattern remains in a choppy range. Indicators have rebounded off oversold levels and for the moment it is a bit positive. Best opportunity is to day-trade and use stop orders to limit the risk.