Tuesday, January 30, 2007
I've been tied up with a bunch of things this afternoon, but not so much that I haven't been trading today. My primary focus has been on crude today. OPEC by way of the Saudis has drawn $50 as the line in the sand and will further cut production. Whether other OPEC members comply is another matter and it will take a couple of weeks to determine whether the overall cartel has cut enough to support prices at these levels. From a technical perspective, there's no reason to believe that the $59 mark can't be challenged in the days ahead for WTI especially with the 50 day moving avg looming large at $58.96.