SEAN LUSK ENERGY REPORT......

As I write on the close the August Crude Oil has traded back above 136.00 a barrel. The market continues to advance, consolidate and advance again. It is but a matter of time until new highs are made again. The Saudi Government said it would increase production by 200,000 barrels a day bringing production to 9.7 million barrels a day next month. This is the third month in a row that the Saudis that the Saudis have raised production and each time time the market has ignored this limp response. The problem is the Saudi Crude is sour crude, its customers however need sweet crude which is low sulpher crude oil. The sweet crude is found in the form of Brent Crude from the North Sea and WTI from Texas and Oklahoma. After shrugging off the lows this morning as the dollar tanked the crude oil summarily rallied past 136.00 reaching a high just over 138.00 before pulling back to around 136.50 at the close. HIGH 138.14 LOW 134.05 CLOSE 136.40 RESISTANCE#2 140.28 RESISTANCE#1 138.33 PIVOT 136.19 SUPPORT#1 134.24 SUPPORT#2 132.10 SEAN LUSK SENIOR BROKER MANDUCA TRADING slusk@manducatrading.com