Mexico Opens Up Oil Fields, Market Yawns
Fundamentals?
Crude Oil futures were able to recover despite overnight data indicating that Chinese PMI had fallen for the first time in three months.? Brent Crude Oil advanced, dragging the WTI contract, after Libyan rebels refused to hand over control of three Oil ports to the government.? This was a setback to those familiar with the situation, as there was optimism that real progress had been made.? Traders are looking forward to this Wednesday?s EIA inventory report to see if the destocking of Cushing, OK will continue.? The Obama administration expanded its list of companies that it would target to block their trading activity due to their business ties to Iran.? This could strain relations between the two nations even more and do away with some of the good will built between the nations in recent months.?
Technical Notes
Turning to the chart, we see the February Crude Oil (CLG14) contract rebounding from recent lows to test the 200-day moving average.? Prices failed to advance beyond the average, which suggests prices could slump in upcoming sessions. The RSI indicator is near overbought levels once again, which could be seen as bearish in the near-term.?
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