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Daily Energy Wire: Crude Closes Above USD105 A Barrel |
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08.03.11 08:59 |
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♦ Nymex crude oil closed above $105 a barrel, traded between $104-106. Crude rose for the second day after Libya’s unrest continues and concerns over supply disruptions.
♦ The dollar index closed near unchanged and the Dow Jones lost about 70 points for the day.
♦ Libya - Great Britain and France are seeking U.N. authority for a no-fly zone over the country after tensions escalated. U.N. is seeking $160 million emergency aid for about 460,000 Libyans who fled or trapped inside the country. U.N. has also appointed Jordan’s Foreign Minister as special diplomat to Libya. President Obama says a wide range of potential options in Libya are under consideration, including a military.
♦ The White House is considering tapping into the nation’s strategic oil reserves after gasoline prices rose 33 cents in the last 2-weeks. IEA says there is no immediate need to release U.S. strategic oil reserves and Libya’s output is only 2% of global oil production.
♦ Citigroup’s analysts raised its Brent crude price forecast to $105 in 2011 and $100 in 2012. Commerzbank AG analysts raised its Brent crude price forecast to $120 a barrel in 2Q 2011 due to the risk of supply disruptions.
♦ OPEC ministers are holding informal consultations over oil prices and Libya, but will not hold an emergency meeting.
♦ AAA says regular gasoline prices at the pump averaged nationwide 6 cents to $3.509 a gallon, the highest level since October 2008.
♦ EIA reported today that average gasoline prices in the U.S. have risen by 13.7 cents to $3.520 a gallon, up 76.9 cents from a year ago. EIA also reported that average diesel prices rose by 15.5 cents to $3.871 a gallon, up 96.7 cents from a year ago.
Crude Oil:
Crude closed $1.02 higher gaining almost 1% today. Crude refresh its 29-month highs after Libya’s unrest continues to escalate. Support level will stay at $100 and resistance will also stay at $110 for the moment. Chart remains bullish as prices continue trade into new highs. Indicators also remain bullish, but trading into overbought levels and losing momentum. Things to look out for: activity in Libya and EIA’s monthly report tomorrow.
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