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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (14414)	5/24/2004 8:26:33 PM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 110194

Lance Lewis comments on crude... Crude oil rose $1.79 to $41.72 and right back to the old high. The reason for the rally in crude was basically that “it didn’t go down” after Saudi Arabia pledge to increase production again this weekend. OPEC postponed any decision on production until its June 3rd meeting, although this decision seemed to have little effect on oil, which hovered below $40 all last night in Asia and again this morning in Europe. Again, oil appeared to rally merely because it didn’t go down, which is the tendency of a market that is getting close to a panic upside phase. With oil at new all time highs and having ignored the Saudi’s pledge of increased production, any little catalyst (or perhaps none at all) and oil could be up $4 or $5 dollars (or more) very quickly. In fact, the COT report on Friday revealed that oil specs actually reduced their net long position as oil made a new high last week, which means that if the specs come back into the market in a big way, crude could really take off. Is it a coincidence that since may 10th when the Dow first closed below 10,000 that crude has been toying with the $40 level during that same period of time? I don’t think so… dailymarketsummary.com