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Earlier today, we wrote that crude oil may be due for a bounce off of the bottom of its trendline:

click charts to enlarge

oil post

Coincidentally, word crossed the wires today that President Bush plans to announce a doubling of the capacity of the strategic petroleum reserve to 1.5 billion barrels by 2027. Although the Department of Energy said the plan will not adversely impact the market or raise gasoline prices, the price of oil rose sharply to $54.84 on the day.

oil 2

Source: Crude Bounces Back Thanks To New Petroleum Reserve Plan