Feb '07 Crude Oil: range-bound price action as warm weather continues to lower upside sentiment

Crude prices have taken a beating as unseasonably warm weather has pulled crude down to its lower range suppport areas dragging oil stocks lower. Previously, technical indicators had been flashing upward momentum with a breakout above Dec. '06 highs but price lows are currently being re-tested as we approach the Nov. '06 lows.

In reverse fashion, bonds are rallying strongly this morning as ongoing sentiment argues for Fed rate decreases and continued belief in inflation cooling.