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Friday, August 22, 2008

UPDATES ON AUG 22 2008

AUG 22 FRIDAY

SHORT TERM TREND : BULLISH

LONG TERM TREND : BEARISH

S1 RS 5215 , S2 RS 5165

R1 RS 5285 , R2 RS 5360

BUY AT RS 5220 TO 5215

STOP LOSS RS 5165

TARGET RS 5285

Oil Heads for Biggest Weekly Gain in Two Months on Dollar Drop .

Crude oil is headed for its biggest weekly increase in more

than two months after rising almost 5 percent yesterday

as the dollar slumped, prompting investors to buy

commodities.

Oil is poised for its first weekly gain in two weeks and its largest

increase since June 6. Energy and metals futures climbed as

the U.S. currency fell the most against the euro in more

than a month.

Crude oil for October delivery was at $121.43 a barrel, down

25 cents, at 11:22 a.m. Singapore time on the New York Mercantile

Exchange. Yesterday, the contract surged $5.62, or 4.9 percent,

to settle at $121.18 a barrel, the biggest increase since June 6.

Futures are down 18 percent from a record $147.27 reached

on July 11. Prices are up 75 percent from a year ago.

Brent crude oil for October settlement was at $120.45 a barrel,

up 29 cents, on London's ICE Futures Europe exchange at 11:21

a.m. Singapore time. It yesterday rose $5.80, or 5.1 percent, to

settle at $120.16 a barrel.

The dollar traded at $1.4866 per euro at 11:24 a.m. in Singapore.

It dropped 1 percent yesterday and touched $1.4903, the

weakest level since Aug. 14 and the biggest fall since June.

The dollar has risen 4.8 percent versus the euro in August,

which would be the biggest monthly gain since May 2001.

Poland signed an agreement on Aug. 20 with the U.S. to

host an American anti-missle base and to provide aid to

bolster the country's air defenses. Russia has warned the

move will lead to a new arms race in Europe and is

reconsidering its ties with the North Atlantic Treaty

Organization.
Russia has defied calls by U.S. President George W. Bush and

other Western leaders for an immediate withdrawal from

Georgia since a cease-fire agreement last week ended five

days of fighting.

The Baku-Supsa pipeline, which pumps more than 100,000

barrels of oil a day from Azerbaijan to the Georgian port of

Supsa on the Black Sea coast, is still shut on security

concerns following fighting between Georgian and

Russian troops.

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