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Two Ways: OPEC Stays Put on Production

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Strengthen your portfolio in good times and bad.

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OPEC Not Budging

OPEC's Secretary General Abdullah al-Badri said yesterday the price of crude oil could spike to $80-90 a barrel by early next year. But even if prices were to reach that level, the cartel won't be expanding production until an over-supply has been absorbed.

In a story by Reuters, al-Badri said last week that he expected to see crude around $70-75 a barrel by the end of 2009, and acknowledged that at current prices there is some speculation but nowhere near the levels when the commodity spiked to a record $147 last July. But continued speculation as well as a falling US dollar could help push prices near triple digits by the beginning of 2010, al-Badri said. He also added that until oil inventories in industrialized countries fall from a current 62 days to 52 days worth of future demand, the cartel won't be making any moves.

From the Bull Pen: For those bullish crude, consider Hess Corp. (HES). The stock was hit yesterday due to concerns related to one of its properties off the coast of South America. But if fears are overdone, it could be rewarding. Watch the behavior near its 50 DMA ($58.70). One can enter an initial position there with a tight sell stop below.

From the Bear Cave: Regarding the dollar, the trend is your friend until it's not. Dollar bears can continue to ride the Euro ETF (FXE). A tight 2 point sell stop could relieve you of any painful correction.

Quick Check Around the World

Asian trading closed with the Hang Seng 1.02%, India -0.03%, Shanghai 1.99%, Nikkei 0.38%, and Taiwan -0.80%.

Glancing towards Europe, we see the CAC -1.13%, DAX -0.54%, FTSE -1.77%

As of 8:00 AM EST, S&P Futures are trading -5 to 937.00, and Nasdaq futures are -7 to 1472.00.

A Look at Commodities

Over in commodities, crude oil is trading -0.76 to 67.79 while gold is -9.20 at 975.20 this morning. Silver is -0.165 to 15.79 and copper -2.75 to 227.00.

The dollar index is +0.5150 to 78.9850.

On the Radar

Economics

08:15 ADP Employment Change -543K Cons.

Click here for the full trading radar.

Happy Hump Day! Good luck!

No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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