Is Oil in a Trading Range?

Saturday, October 10, 2009

This is today`s word on the trading desks. Traders think oil futures are forming a short term trading range.

"Crude-oil markets still seem to be trapped within a trading range, as market anticipation about OPEC cuts -- both current and pending-- is keeping something of a floor below prices, while the upside is capped by lingering concerns over the macro situation" Edward Meir, an analyst at MF Global

“Oil traders are likely to wait for non-farm payroll data release tomorrow as a leading indicator of underlying oil demand” said Gareth Lewis-Davies, an analyst at Dresdner Kleinwort Group Ltd. in London

“The market is stuck in a sideways range as the impact of the OPEC production cuts conflicts with high stock levels and weak demand” said Christopher Bellew, senior broker with Bache Commodities Ltd. in London

Crude oil has been trading at about 40 a barrel in the past three days. Short term technical indicators keep indicating lower prices.

Oil Traders is a website for NYMEX Crude Oil Futures traders and Oil ETF`s traders around the world.

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