Alert

Oil prices have reversed and are now heading higher on nervousness over the assassination of Pakistani Opposition Leader Benazir Bhutto. The USD dollar is also weaker on the news. The situation in Pakistan is quickly becoming very unstable and creating anxiety throughout the region. Although Pakistan is not an oil exporter the evolving situation in Pakistan is quickly adding to the oil risk premium as instability could possibly spread to oil exporting regions.

 

The combination of this situation and ongoing activity in Northern Iraq the oil complex is not likely to recede anytime soon and today’s oil inventory results may quickly become a secondary market driver. Currently prices in the oil complex are firm.

 

 

Current Expected Trading Range
	12/27/07	Change	Upper	Lower
		From	Resistance	Support
	9:06 AM	Yesterday
Feb WTI	$96.47	$0.50	$97.50	$85.00
Jan HO	$2.6577	$0.0165	$2.7500	$2.5000
Jan RBOB	$2.4645	$0.0119	$2.5000	$2.2000
Jan NG	$6.942	($0.104)	$7.660	$6.640

 

 

Dominick A. Chirichella

Energy Management Institute

tel 646.202.1433

fax 801.383.7510

dchirichella@emimail.org

www.energyinstitution.org

www.advancedenergycommerce.com

 

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