Unassuming Crude
Does anyone remember when we all use to obsess about the price of Crude Oil? With all of the attention being paid to the subprime market of late, it seems that the media has abandoned Oil like an unwanted puppy.
With Oil giving a tease around the $80 mark a few weeks ago, it has since relinquished the upward momentum, closing at 71.12 today. Is it technical or weather related?
If it is weather related, then traders must feel that Hurricane Dean will not be a factor to the Oil-producing areas in the Gulf of Mexico, and certainly no reason to drive prices further up at this time.
On the other hand, if recent moves are technical in nature, we may be nearing a long-term double top similar to last summer, when Oil was in this price range. We didn’t reach new highs at that point, but we did come close.
Should we see the price of near $80 again soon, it will be interesting to see if the double top holds, or if bad news from the Gulf will push it over the top.
