Bubblin’ Crude
Crude Oil rose to a new all-time high today, topping the $86 mark for the first time ever. The Turkish government and the Iraqi Kurds have been butting heads of late, and the repercussions of this cross-border spat is being felt in the Crude market. With the Kurdish rebel bases located near major pipeline systems, fears of a supply disruption in Crude Oil are running high. Of course, the market is constantly on the lookout for supply threats around the globe, so it’s hard to tell if this latest dustup has already been priced into the Crude market as a risk premium during the recent climb. The Crude Oil inventory report comes out on October 17th.
Over in the beverage market, bulls are not drinking Coffee. Dropping below the 20-day moving average (which was support earlier last week), java is most certainly a bear drink today. Although Coffee did manage to stay above psychological support at 130, it could slip back to the 120 area should it fill the gap that was created last month before the 20-day mark. The only area where we could see some other support is around the 127 mark, right above the gap-up.
Mike Tosaw, Director of Education
