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Crude Oil Rises as Traders Push Toward $40 a Barrel in New York

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While New York oil remains so close to $40, brokers and anal cysts said chart patterns, or technical analysis, will take precedence over fundamental changes in supply and demand. Technical traders assume that if the price goes through the barrier of $40 a barrel, which has been a ceiling for prices, that level will then become the new floor instead.

 

``Yesterday's activity seems to have been little more than a delay to what everyone is now citing as being inevitable --the printing of a crude oil price with a $40 handle,'' Peter Beutel, the president of the energy consultants Cameron Hanover Inc. in New Canaan, Connecticut, said in a report.

 

Should New York crude exceed $40, the next target may be its all-time intra-day high of $41.15, reached on Oct. 10, 1990.

 

Hedge funds and other large speculators have increased their bets over the past four weeks that New York crude futures will rise, though they've yet to buy as many as they did in mid-March. The net long position held by large speculators --contracts bought minus contracts sold -- was 59,542 as of April 27. Net longs reached a peak of 80,040 on March 23, according to data from the Commodity Futures Trading Commission.

http://quote.bloomberg.com/apps/news?pid=1...r=latin_america

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=DJ OIL FUTURES: Nymex Crude Seen `Decisively' Hitting $40

 

By Leah McGrath Goodman

Of DOW JONES NEWSWIRES

 

NEW YORK (Dow Jones)--Crude futures were expected to open higher Friday on the New York Mercantile Exchange as market participants predicted a leap to $40 a barrel led by jitters of further weekend terror attacks.

 

"We'll go to $40 today, obviously," said Scott Meyers, senior trading anal cyst for Pioneer Futures Inc. in New York. "It's going to be a very interesting morning. The market is very strong. But will it be a self-fulfilling prophecy, will we run through $40 and people will take profits? We'll have to see."

 

Although traders largely see $40 a barrel as a foregone conclusion, little else appears certain.

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Guest libertas
Oh Noooooo

Krispy Kreme Down 22% On Lower FY05 Earnings Estimate>KKD

Must be those high oil prices cutting into their margins :D

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zen - great mirror image charts...gold making lower low at same USD level...not good (unless you're looking to buy soon)

 

'got shaken out of 25% of my SPX puts on the open..couldn't risk a parabola after the futures bounced off the low...now returning to the scene of the crime...

 

this is how da boyz take the market down

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