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Friday, September 19, 2008

What's Up With Oil

Oil got a big boost today thanks to the government bailout plan. But what number should we watch? I'd say keep your eye on overhead resistance at 102.89. If oil can close above that in the next couple trading sessions, we can go higher. Otherwise, we're looking at a trip back to 90 or even strong support at 87.
Here are some stories to keep in mind ...

Gasoline Supply May Fall `Substantially,' Energy Official Says
(Bloomberg) -- The Energy Department's Sept. 24 inventory report may show that U.S. gasoline supplies fell 8.5 million barrels from a four-decade low as Texas refineries assess damage from Hurricane Ike, a department official said.
"Probably the max is an 8.5 million draw in gasoline because demand is down, and it could be as low as 6.5 million'' barrels, John Duff, survey manager for the Energy Department's weekly petroleum status report, said in an interview. The report will show "the real impact of the hurricane on the refining sector,'' he said. Supplies will fall "substantially.''

Hurricane Ike destroys 49 oil platforms in Gulf

The Interior Department said in the latest hurricane damage assessment that the platforms altogether accounted for 13,000 barrels of oil and 84 million cubic feet of natural gas a day. There are more than 3,800 production platforms in the Gulf producing 1.3 million barrels of oil and 7 billion cubic feet of gas each day. About 93 percent of the Gulf's crude oil production remains shut down as does 77.6 percent of its natural gas production, said the Minerals Management Service

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