Very weak price action in oil today as oil closed down in spite of a large decline in the dollar and a pipeline bombing in Nigeria over the weekend. Oil closed down .22 after starting the night session up as much as $1.00 driven by a major decline in the dollar index and a bombing in Nigeria. It has continued lower after the close of the pit session and is now hovering above support at $82.00. While today's close did not violate the $81.80 low from yesterday, it was an ugly reversal and shows real weakness as a very weak dollar is often acts as rocket fuel for oil prices in a strong market.
Monetary factors were very supportive today with the dollar index down .47 (.7%), Gold up around $15 and Silver up $.30.
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