Crude Oil price broke its short-term uptrend

Crude Oil prices dropped sharply yesterday, in reaction to the news that International Energy Agency ('IEA') is cutting its forecast for global demand through 2008, by 300,000 barrels per day from its previous estimate.

From the chart below, we can see that the short-term uptrend line (S2) has now been violated at the USD93 level. Unless, there is a quick recovery above USD93, Crude Oil is likely to drift lower. I believe it should find support at the psychological USD90 or the medium-term uptrend line (S3) support of USD85-86.


Chart: Crude Oil chart as at November 13 (courtesy of SuperCharts by Omega Research)