nymex crude outlook

U.S. crude futures fell below $51 yesterday and settled lower as demand worries after a government report showed the U.S. economy shrank more severely during the third quarter than initially estimated.

According to the U.S. Commerce Department, real GDP decreased at an annual rate of -.5% in the third quarter, down from the previous estimate of -.3%, as expected.

But on Monday crude oil closed in the green in line with the stock rally .Stocks rallied after the announcement of U.S governments rescue package for Citigroup .U.S. government agreed to inject $20 billion of new capital to rescue troubled Citigroup yesterday. Investors remain cautious due to concerns about a global recession; they welcomed the U.S. government's $300 billion-plus lifeline to prevent the collapse of the world's largest banking group

According to the International Energy Agency, the Oil prices will remain under downward pressure in 2009 as the weak global economy hits demand. And also a report says that the oil companies are booking tankers to store millions of barrels of crude oil at sea, waiting for demand and prices to rise.

All the oil traders are keeping their eyes to the OPEC meeting that will be held on Nov. 29 in Egypt and again on Dec. 17 in Algeria.

According to a monthly report from the American Petroleum Institutions the oil demand had dropped 5% from January through October -- marking their largest decline since the early 1980s,
As crude-oil prices has drooped more than 63% from their record high as the credit crunch deepened. Oil price had touched an all-time high of $147.27 a barrel on 11th July but has corrected from there in the succeeding weeks.
Light, sweet crude oil for December delivery in the New York Mercantile Exchange traded in the range $54.66-$50.52, and settled at $50.65 a barrel yesterday.

Weekly Crude Oil (DWTI dec.)

Weak movements expected below $48.20, otherwise expecting some recovery .Resistances are $51 $54.30, $58.80, Supports seen at $44.80, $40.20, and$ 35.

DWTI (DEC) traded in the range $53.85 - $50.60 and closed at $50.77

TECHNICAL OUTLOOK (Intra-day)
DGCX Crude (DEC) - Bullish above $51.20 bearish below $50.40


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