Crude Oil Weakens on News China Will Not Initiate New Stimulus Plan

April Crude Oil broke on Thursday following the news that China would not initiate a new economic stimulus plan. Although the market gave back some of its gains from Wednesday, the short-term uptrend remained intact leading to speculation that crude may take another shot at an upside breakout.

Overnight news that China’s first stimulus plan is helping the economy to recover may provide support this morning. A worse than expected U.S. Non-Farm Payrolls Report may be bearish as it will be a sign that the economy is headed for a lengthy recession. This news will likely lead to another decrease in demand.

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Posted by James A. Hyerczyk at Friday, March 06, 2009 6:04 AM
Categories: Energies
Tags: Heating Oil Crude Oil Natural Gas Unleaded Gasoline
 

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