Market Talk with Piranha is currently moving to its new home at chrisperruna.com. The new site is up and running but many of the posts need editing as the images and stock charts did not transfer successfully (thanks blogger). I will post all new entries to both blogs – Thank you for your patience while I make this change!

Wednesday, August 02, 2006

Tropical Storm “Chris” affecting Market

Crude oil topped $76 earlier today as Tropical storm CHRIS (what a name) gathers strength in the Caribbean and heads towards the Gulf of Mexico and possibly the Gulf Coast. Investors fear that the storm could grow into a hurricane and possibly disrupt oil output from the rigs in the Gulf area (similar to Katrina and Rita from last year).

As an article by Simon Webb stated: “Last year's hurricanes shut a quarter of U.S. crude and fuel output and sent oil to record highs. Around 12 percent of the U.S. Gulf of Mexico's 1.5 million barrels per day (bpd) oil output is still offline.”

As you can see on the chart, crude oil has been trading in a range over the past couple of months with a support line near $70 and a shorter term support/resistance line near $75.

With the crisis in the Middle East and the threatening storm, oil related stocks and futures will be hot short term plays!



Piranha

1 Comments:

At 4:40 AM, Blogger Vern How said...

hey chris,

thanks for the report. I believe that oil will be rising constantly at least in the coming few years due to the lack of oil exploration activities and the constant upheaval of bad weather.

Regards,
Vern
____________________________
http://vernhow.blogspot.com

 

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