Crude Oil Futures Retreat From 26-Month High on Investor Sales

(From BusinessWeek.Com, By Mark Shenk )

(Bloomberg)  Crude oil tumbled from a 26-month high after failing to maintain a break through technical resistance, spurring sales by investors.

“Buying often dries up after we break through a key technical level,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “You are seeing the new longs bail out after the market failed to increase from today’s highs.”
Oil slipped as much as 1.1 percent after being unable to hold gains above $90 a barrel. Longs are bets that prices will rise. Futures surged earlier today after President Barack Obama said he’ll agree to a two-year extension on all Bush-era tax cuts in a compromise he called “an essential step on the road to recovery.”


Crude oil for January delivery declined 74 cents, or 0.8 percent, to $88.64 a barrel at 12:28 p.m. on the New York Mercantile Exchange. The contract touched $90.76, the highest intraday price since Oct. 8, 2008.
Brent crude oil for January settlement fell 50 cents, or 0.5 percent, to $90.95 a barrel on the London-based ICE Futures Europe exchange. Futures reached $92.86, the highest level since Oct. 2, 2008.

Editors: Joe Link, Richard Stubbe
Source Link: http://www.businessweek.com/news/2010-12-07/crude-oil-futures-retreat-from-26-month-high-on-investor-sales.html