• 3 minutes UAE says four vessels subjected to 'sabotage' near Fujairah port
  • 6 minutes Why is Strait of Hormuz the World's Most Important Oil Artery
  • 8 minutes OPEC is no longer an Apex Predator
  • 12 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 47 mins Canada's Uncivil Oil War : 78% of Voters Cite *Energy* as the Top Issue
  • 2 hours California Threatens Ban on ICE Cars
  • 3 hours Did Saudi Arabia pull a "Jussie Smollett" and fake an attack on themselves to justify indiscriminate bombing on Yemen city population ?
  • 2 hours China Downplays Chances For Trade Talks While U.S. Plays ‘Little Tricks’
  • 3 hours "We cannot be relying on fossil fuels to burn as an energy source at all in our country" - Canadian NDP Political Leader
  • 1 day Solar Industry Lays Claim To The 2020s; Kicks Off The Solar+ Decade
  • 12 mins Australia Sky News Election Summary: "This was the Climate Change Cult Election, and the Climate Change Cult Lost"
  • 2 hours IMO2020 To scrub or not to scrub
  • 22 hours Shell ‘to have commercial wind farms’ by early 2020s
  • 6 hours Global Warming Making The Rich Richer
  • 7 days How can Trump 'own' a trade war?
  • 7 days China, U.S. Hold 'Productive' Trade Talks In Beijing
  • 2 hours Wonders of Shale- Gas,bringing investments and jobs to the US

Oil Market Forecast & Review 25th January 2013

An improving global economy and stronger demand for higher risk assets helped drive crude oil futures higher this week. Although the market looked sluggish at times due to technically overbought conditions and uncertainty over the U.S. debt ceiling issue, the nearby futures contract has been able to hold on to most of its gains.

Typically, a rally lasts 7 to 10 weeks. We are now in the eleventh week since the bottom at $85.40. This makes the market vulnerable to a short-term correction. The best topping signal to watch for is a closing price reversal. This occurs after the market has had a prolonged move up in terms of price and time and closes lower after posting a new high for the week.  All of these conditions have been met this week so a close below $96.04 on Friday could trigger the start of a decline next week.

On Thursday, January 24 the Energy Department’s Energy Information Administration said in its weekly report that crude oil supplies rose by 2.8 million barrels. This was higher than pre-report estimates and could be the catalyst that puts in the top and triggers the start of a much needed break.

Basically the fundamentals suggest the market should start to correct the eleven week rally. Speculators, on the other hand, buoyed by stronger demand for higher yielding assets and a bullish stock market continue to drive prices higher. Markets don’t go up forever and buying eventually dries up, but at this time there doesn’t…




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