• 4 minutes Projection Of Experts: Oil Prices Expected To Stay Anchored Around $65-70 Through 2023
  • 7 minutes Oil prices forecast
  • 11 minutes Algorithms Taking Over Oil Fields
  • 14 mintues NIGERIAN CRUDE OIL
  • 11 mins UK, Stay in EU, Says Tusk
  • 59 mins Socialists want to exorcise the O&G demon by 2030
  • 9 hours How Is Greenland Dealing With Climate Change?
  • 11 hours Blame Oil Price or EVs for Car Market Crash? Auto Recession Has Started
  • 5 hours Venezuela continues to sink in misery
  • 9 hours German Carmakers Warning: Hard Brexit Would Be "Fatal"
  • 11 hours WSJ: Gun Ownership on Rise in Europe After Terror Attacks, Sexual Assaults
  • 5 hours Maritime Act of 2020 and pending carbon tax effects
  • 1 day "Peace Agreement" Russia vs Japan: Control Over Islands Not Up For Discussion
  • 1 day BofA Sees Oil at $35-70
  • 1 day Regular Gas dropped to $2.21 per gallon today
  • 12 hours Trump inclined to declare national emergency if talks continue to stall - Twitter hides this as "sensitive material"
  • 17 hours Orphan Wells
Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Oil Market Forecast & Review 12th April 2013

June crude oil futures traded mixed last week as traders had to deal with conflicting signals. Technically, the market is oversold on a short-term basis which gives it a slight upside bias. In addition, a weaker U.S. Dollar is making it cheaper for foreign buyers. Increased demand for higher-yielding assets is also helping to underpin prices.

On the downside, however, is the thought that the pace of U.S. economic recovery is weakening. The recent lower-than-expected jobs data indicated an economy filled with uncertainty as business aren’t hiring at a rate necessary for the Fed to lift its asset-purchasing program. Furthermore, huge supply and low demand are still major issues. The International Energy Agency recently cut its global demand forecast for 2013 for the third consecutive month. The agency also predicted the weakest demand for Europe since the 1980’s.

In addition to the EIA forecast, the Organization for the Petroleum Exporting Countries (OPEC) also cut its global demand estimate for the second time in two months last Wednesday. Last week, U.S. crude oil inventories increased by 0.3 million barrels to hit 388.9 million. These reports are all indicating that the fundamentals are not supporting a global economic recovery and that pressure is likely to remain on crude oil prices.

Taking a look at the weekly June crude oil futures contract chart, we see that the market is straddling a major 50% balance level. Based on the top at $107.86…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin



Oilprice - The No. 1 Source for Oil & Energy News