By Mark Shenk Oct. 15 (Bloomberg) -- Crude oil rose above $77 a barrel to a one-year high in New York and gasoline surged after an Energy Department report showed an unexpected decline in stockpiles of the fuel as refineries idled units. Inventories of the motor fuel tumbled 5.23 million barrels last week, the biggest drop since September 2008, the department said. A 1.13 million-barrel increase was forecast by analysts surveyed by Bloomberg News. Gasoline output declined 10 percent, the most in 13 months. Refineries operated at 80.9 percent of capacity, the lowest level since April.
ONG Focus - Technical Written by Oil N' Gold
Nymex Crude Oil (CL)
Crude oil's rally extends to as high as 75.96 so far and intraday bias remains on the upside for the moment. Current rise is still expected to continue to 38.2% of 147.27 to 33.2 at 76.77 and break will target 80 psychological level next. On the downside, below 74.64 will turn intraday outlook neutral and bring retreat but downside should be contained by 70.74 support and bring rally resumption.
In the bigger picture, medium term rise from 33.2 is still in progress and could extend further. Nevertheless, strong resistance should be seen in 76.77/90.24 fibo resistance zone (38.2% and 50% retracement of 147.27 to 33.2) to conclude the medium term rise finally. On the downside, in case of pull back, break of 65.05 is needed to indicate that crude oil has topped out. Otherwise, further rise is still in favor.
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