Crude Oil Futures decline further.

Category: Commodity Trading | Crude Oil Trading | Natural Gas Trading
June 2, 2012 | Comments Off |
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Crude Oil Futures

Crude Oil Futures decline further.

Crude Oil Futures (July) hit a low of $82.29 – Crude Oil futures below $88.57 forecasted to decline last to $78.40. For the shorter term targets given were for a dip to $86.41, $85, $82.72. As alerted earlier, any breach with a sustained momentum below $88.30 may trigger a strong bearish trend for Crude Oil with a longer term target set towards $78.40.

For the next week Crude Oil futures will remain weak till trades continue movements below $85.60 & will decline further to $81.55, $79.75 & on a further downside spike to $77.23, thereby hopefully achieving our TARGET of $78.40.

Crude Oil futures settled below $84 a barrel Friday, losing more than 8% for the week as the latest economic data from theU.S., China and Europe dulled global prospects for energy demand.

The benchmark July contract for light, sweet crude oil shed $3.30, or 3.8%, to settle at $83.23 a barrel on the New York Mercantile Exchange. Futures prices, which closed at their lowest since Oct. 7, were 8.4% lower for the week. On Thursday, crude futures fell $1.29, or 1.5%, to $86.53 a barrel, marking the lowest settlement for the contract since Oct. 20. And for May as a whole, oil futures sustained a loss of 17% — the worst one-month drop since December 2008. With the weaker-than-expected jobs report today the continuing European uncertainty on several fronts, and China slowing down. Recent strength in the U.S. dollar has put broad pressure on the dollar-denominated commodities sector.

Crude Oil Futures fell to the lowest level in almost 8 months as employment reports in the U.S. and the euro area signaled fuel demand may tumble. Prices are down 24% from this year’s closing high of $109.77 on Feb. 24. Futures decreased 8.4% this week, the most since the week ended Sept. 23. Brent for July settlement tumbled $3.44, or 3.4%, to $98.43 a barrel on the ICE Futures Europe exchange in London, the lowest close since Jan. 27, 2011. The European benchmark fell 7.9% this week and 8.3% this year.

Natural gas futures dropped to a four-week low in New York as forecasts for cooler weather in the eastern U.S.over the next week signaled reduced demand from power plants.

Natural gas for July delivery sank 9.6 cents to $2.326 per million Btu on the Nymex, the lowest settlement price since May 4. The futures, down 22% this year, fell 9.4% this week, the biggest decline since the week ended Jan. 20.

July $2.75 calls, bets that prices will rise, were the most active options in electronic trading on the exchange. They were 1.3 cents lower at 2.3 cents per million Btu on volume of 699 contracts at 3:14 p.m. The price discount, or spread, of the July contract to August futures increased 0.2 cent to 6.1 cents.


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