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Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

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Are Oil Markets About To Turn Around?

Oil

Despite hitting its lowest level in over a year earlier in the week, crude oil is showing signs of stabilizing. This is perhaps an early indication that the worst of the selling may be over. With crude oil, sentiment is being influenced by expectations of production cuts by OPEC and its allies.

Crude Oil

Russia Changes its Tune

After U.S. crude oil fell below $50 for the first time in over a year, the news hit that Russia would consider joining OPEC and other producers to cut output. This triggered the technical reversal in the markets.

The reaction by traders to the news about Russia was primarily driven by short-covering, but nonetheless, it is a good sign that the buying may be greater than the selling at current price levels. Furthermore, it also puts the markets in a position to close higher for the week, which would also be a positive development.

The Russian news also seemed to catch investors by surprise because on Wednesday, Russian President Vladimir Putin said he was in touch with OPEC and ready to continue cooperation on supply if needed, but he was satisfied with an oil price of $60.

Sentiment shifted on a report that the Russian Energy Ministry held a meeting with heads of domestic oil producers on Tuesday, before a gathering…





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EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
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