UPDATES ON JULY 9 2008

JULY 9 WEDNESDAY

SHORT TERM TREND : BEARISH: TARGET RS 5730

LONG TERM TREND : BULLISH: TARGET RS 6460

S1 RS 5845, S2 RS 5790, S3 RS 5735

R1 RS 5948, R2 RS 5980, R3 RS 6015

PREFER SHORTS AT RS 5940 TO 5946

STOP LOSS RS 5980

TARGET RS 5845

Oil Is Near Two-Week Low as Dollar Rises, Iran Dismisses War .

Crude oil traded near a two-week low in New York after

falling almost 4 percent yesterday as Iran downplayed

the possibility of a war and the dollar rose, limiting the

appeal of commodities.

The dollar traded near a two-week high against the euro,

reducing the demand for oil as an inflation hedge. Crude

has dropped more than $9 from a record $145.85 a barrel

reached on July 3.

Crude oil for August delivery was at $136.50 a barrel, up

46 cents, at 12:49 p.m. Singapore time on the New York

Mercantile Exchange. Yesterday, oil tumbled $5.33, or

3.8 percent, to settle at $136.04 a barrel, the biggest

drop since March 31. Futures lost 6.4 percent in the

previous two days, the biggest two-session decline

since March 20. Prices are up 89 percent from a

year ago.

Brent crude oil for August settlement was at $137.00 a

barrel, up 57 cents, on London's ICE Futures Europe

exchange at 12:46 p.m. Singapore time. Yesterday, it

declined $5.44, or 3.8 percent, to settle at $136.43 a

barrel, the biggest drop since March 19. Prices climbed

to a record $146.69 on July 3.

Oil in New York climbed 8.3 percent in the two weeks leading

up to the July 3 record on reports that Israel may attack

Iran over its nuclear program. Iran said that it is seeking

atomic power to generate electricity and not construct

weapons.

Crude-oil stockpiles probably fell 2.05 million barrels in the

week ended July 4 from 299.8 million barrels, according to

the median of responses by 12 analysts before an Energy

Department report today.