Crude Rises for Third Straight Day

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Jan. 22 (Bloomberg) -- Bloomberg's Greg Bender reports on the price of oil on Bloomberg Television's "In The Loop." (Source: Bloomberg)

Keystone southern leg which will bring oil from the midwest to the u.s. gold coast, 520,000 barrels per day and will ramp up after that.

What kind of upside might we see?

The market seemed like they liked that news.

We are up the third straight day and even that with the backdrop of the up date of increased estimates for production from the international energy agency plus people are looking for a drawdown on distal it inventories tomorrow pl uus you have a technical picture and that is playing into a bullish reaction.

You mentioned distal it rocks are low.

It means that refineries have to work harder to make more products that the ia said we could hit acrude wall.

There will be increased supply but it is focusing on the united states.

We seem to have the improving economic picture which increases the demand to use up that supply.

In europe, it is different.

They have more supply disruption but maybe the demand side is not as robust as the united states.

That is the demand picture.

Talk to me about the technicals.

On the weekly chart which is a longer-term picture, you have signals that usually last 6-8 weeks and things are starting to look a little bearish.

You have the 50 day cross under the 200 day moving average but couple of weeks ago.

When that happened, it shows the importance of drilling down and knowing what the shorter-term picture is for crude oil.

It trades in the futures market and is very short-term oriented sometimes.

Back in november,, we were at $90. that's not the time he wanted to sell.

You wanted to buy it then and we had a short-term rally.

I am seeing a little bit of the same picture.

We started the year off at a 10% decline right off the bat.

We are now starting to see some oversold reaction to oversold conditions.

Anyone that is possibly going to lay an increased supply, we could possibly look at a short- term bounce of up to $100. should we buy on the one dollar increase?

You could if your outlook is intermediate term.

In the longer term, you have a trendline connecting lows back to the mid-2012. depending how you draw that line with a crayon or pencil, you could draw that active 2009. that's an important illustrated line.

The longer-term players are leaning to buy crude oil.

Thanks very much.

We are "on the markets" again and 21 -- in 30 minutes.

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This text has been automatically generated. It may not be 100% accurate.

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