Oil Stocks Testing Support

Commentary: Oil has been in a decline since reaching the high $80s earlier this year. While it was a little surprising how far oil prices fell during the financial crisis, the rebound also caught traders off guard. Oil had rallied back to $87.50 even against the backdrop of a weak economy. Oil prices backed off those levels later in the summer and are close to testing an important support level near $70. This level has held as support on several occasions and should be closely watched.