Crude Oil Futures Update

Yesterday oil continued the downtrend after the weekly inventory release. We had a larger build in distillates, 5th week in a row, which sent November oil to $60.61 the lowest level since March 06.

OPEC announced earlier this month that the they see the $55-60 level as defense line, which could lead to output reduction if this continues.

President Bush did once again stress the need to end the ongoing nuclear issue with Iran in a diplomatic fashion. WTI Crude are in oversold territory and we expect a correction towards $63.00 on fresh longs (technical buying).

Trade Idea: Buy at 60.95; Target at 63.25; Stop at 60.20.