• 3 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 5 minutes Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 9 minutes This Battery Uses Up CO2 to Create Energy
  • 12 minutes Shale Oil Fiasco
  • 9 mins Historian Slams Greta. I Don't See Her in Beijing or Delhi.
  • 3 hours We're freezing! Isn't it great? The carbon tax must be working!
  • 18 hours Indonesia Stands Up to China. Will Japan Help?
  • 8 hours US (provocations and tech containment) and Chinese ( restraint and long game) strategies in hegemony conflict
  • 4 mins Beijing Must Face Reality That Taiwan is Independent
  • 19 hours Tesla Will ‘Disappear’ Or ‘Lose 80%’ Of Its Value
  • 23 hours Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 10 hours Might be Time for NG Producers to Find New Career
  • 2 days Phase One trade deal, for China it is all about technology war
  • 6 hours Trump has changed into a World Leader
  • 1 day Anti-Macron Protesters Cut Power Lines, Oil Refineries Already Joined Transport Workers as France Anti-Macron Strikes Hit France Hard
  • 2 days Angela Merkel take notice. Russia cut off Belarus oil supply because they would not do as Russia demanded

Oil Market Forecast & Review 25th January 2013

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