Intraday Digest: Crude Oil Retreated After Auto Bail Out Plan Failed.

Intraday Digest: 12-12-2008 Friday Crude Oil Futures (QM, NYMEX)

As Senate rejected the US Auto Bail Out Plan yesterday, crude oil tumbled more than 7% and found support at $44.00 area. I think it was abit of over-reaction, keep in mind that consumer used crude oil from auto vehicle only accounts for 6 or 7% of the total crude oil useage, industrial use accounts for some 76% or so, I expect rally coming from crude oil next week, recently crude oil futures has been in very volatile sessions, it is not unusual to see 5%+ movements in intraday session, but given the smaller dollar amount right now, 5% movement at $40/barrel = $2, while 3% movement at $140/barrel backed to July was $4.2! you get my point.