crude oil prices prediction june 27 june 2011

crude oil prices prediction june 27 june 2011 ; Oil prices plummeted to four month lows at the end of the week after the International Energy Agency (IEA) decided to tap into its strategic reserves to release 60 million barrels into the markets over the next 30 days. Thursday’s shocking announcement from the Paris-based agency, whose prime mission is to ensure that the oil market is well supplied, triggered a sell-off in commodity markets and drew the ire from OPEC price hawks.

Crude oil contracts for August and September delivery shed over US$8 per barrel in New York on the back of the announcement from IEA, while Brent crude fell to nearly US$100 per barrel just two months after topping US$125.

IEA said it was responding to the shortfall in oil supplies caused by the civil war in Libya, which has taken the North African’s country entire production of 1.7 million barrels per day off the market.

Oil prices edged higher on Friday with US crude futures returning above US$91/barrel despite renewed concerns over Europe’s debt problems.

On Friday, Moody’s put the ratings of 13 Italian banks under review for a possible downgrade. The rating agency added that another 16 banks in Italy could see their long term debt ratings slashed.

Traders fear that the debt crisis that has put Greece on the brink of bankruptcy may spread into other euro zone countries, triggering another financial meltdown and reducing energy demand.

US light, sweet crude for August delivery, which is currently the most actively traded contract on the New York Mercantile Exchange (NYMEX), ended the week at US$91.10/barrel. August Brent crude closed at US$105.63/barrel on London’s ICE Exchange on Friday.

Light Sweet Crude oil Technical Analysis Monday June 27, 2011
The CL fell on Friday, but regained all of its losses as traders bought the contract at the $90 mark, a major support area. The market looks weak, and although we formed a bit of a hammer, we are hesitant to buy at this point. We would like to see a nice green candle before we buy. A break of $90 could have us heading towards $85 fairly quick.

Brent Crude oil Technical Analysis Monday June 27, 2011
Unlike the CL, Brent never really got much of a bounce towards the end of the Friday session. The market is still sitting just above the $105 area, and as such would be difficult to sell at this point. However, this market looks far too weak to buy either. We suggest letting the $105 support and resistance area to be played out before getting into the market at this point. For the latest updates PRESS CTR + D or visit Stock Market news Today

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