Oil Rises From Six-Week Low

Crude oil rose from a six-week low in New York as a tropical storm headed toward the Gulf of Mexico, home to more than a quarter of U.S. oil production.

U.S. forecasters said there is a 29 percent chance Tropical Storm Dolly may strengthen to a hurricane after it enters the Gulf of Mexico. The weather system's projected path will take it across Yucatan peninsula today, close to Mexico's largest oil field, the U.S. National Hurricane center said.

The dispute with Iran has become a perpetual sticking point in the background of the crude market.

If you have not bought oil, I think current level of $131 is a good level to buy. Oil price had plunged $17 last week, I think oil price is oversold. Falling US dollar will push the oil price up again.

Both Stochastics and Williams are showing buy signal for oil.