ALERT: GREECE TO ACCELERATE ASSET SALE
 
PETROLEUM MARKET

Crude oil futures still reflect the  pessimistic outlook for the global recovery and the European debt crisis. The mood spread yesterday from Asia into the European and North American sessions. Investor's sought protection from risk by moving into the dollar which in turn, added more weight on oil prices. API's report last night, particularly showing that gasoline demand declined speaks volumes about its growing  inelasticity. The dollar is moving higher again this morning which should keep oil capped, at least until this morning's stockpile report. This is probably why the market has had an unusually narrow range so far today. Additionally, be careful of headlines from Europe, where President Obama is visiting. Volatility remains high and sentiment is constantly shifting, but with the prevailing negativity, oil probably will be pressured lower, which is why we still think a 94-96 trading range is currently targeted, before breaking in either direction. Still, some may take solace from a drop in crude inventories to push prices higher.
 

TECH TALK

Crude oil's Intraday bias is back to neutral and more sideways trading could be seen above 94.63. The upside should be limited by 100.00. As we saw yesterday, momentum dissipates quickly above that level. Break of 94.63 will target 90 psychological level next. Though, break of 104.60 will bring stronger rebound towards 114.83 high instead. In the early going, support near 98.76 held, but the market had difficulty moving into positive territory. Look for volumes to begin to diminish as long holiday weekend approaches.
 
 
NATURAL GAS

The market is keeping in positive territory without covering any new ground or generating additional momentum. The fear is that demand from power plants won't be strong enough to surpass rising supplies of the fuel. This conclusion came on the heels of DOE's estimate of record gas production for 2011. EIA should report tomorrow that another 91 bcf was injected to stocks for the latest reporting period. As we said yesterday meteorological intervention will probably now be the most sensitive addition to upward momentum, either through the agency of a tropical storm or extended heat wave in the high consumption regions. NOAA estimated last week  that 12 to 18 named storms would form during the season. Of those storms, six to 10 may become hurricanes. The average Atlantic hurricane season produces 11 named storms.
 

TECH TALK

The buy signal remains active with another settlement over the moving averages. Price action over today's pivot of 4.337 also shows inherent strength. The strong rebound off 4.77 recently targets the latest high at 4.729. A break down through 4.077 will open the way to 3.731 and beyond that to 3.255. On the upside, though, decisive break of 4.729 resistance will target 6.108. Stay with length as long as 4.20 holds, but only add to it if there is an upside break.

source: KilduffReport.Com