Crude Oil Rallies - Futures Update

Oil rallied yesterday on Tropical Storm named Chris approaching the Mexican Gulf and oilfield areas. With current projection the storm could hit sometime next week and escalate to hurricane status in the meantime. With last years hurricanes Cathrina and Dennis fresh in mind fears of a repetition is certainly around and this would be one of the main drivers pressing Oil higher.

Iran decided to continue its nuclear program despite last weeks U.N resolution calling for a halt of the Uranium enrichment. Middle East conflict between Israel and Hezbollah entered a new escalated phase as ground troops moved in deeper over the Lebanese border threatening to engage both Syria and Iran deeper into the conflict.

With all this in mind Oil rallied as much as 53 cents yesterday but kept just below 75,50 resistance area. With current situation a serious attempt to break higher will most likely be seen this afternoon $77/bbl next resistance and $74,75 support