• 6 minutes Saudis Threaten Retaliation If Sanctions are Imposed
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes Saudis Pull Hyperloop Funding As Branson Temporarily Cuts Ties With The Kingdom
  • 7 mins WTI @ $75.75, headed for $64 - 67
  • 5 hours Saudi-Kuwaiti Talks on Shared Oil Stall Over Chevron
  • 1 min The Dirt on Clean Electric Cars
  • 9 hours OPEC's No. 2 Producer Wants to Know How Buyers Use Its Oil
  • 3 hours Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 11 hours Iranian Sanctions - What Are The Facts?
  • 5 hours UN Report Suggests USD $240 Per Gallon Gasoline Tax to Fight Global Warming
  • 5 hours U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 4 hours EU to Splash Billions on Battery Factories
  • 2 hours COLORADO FOCUS: Stocks to Watch Prior to Midterms
  • 12 hours U.S. - Saudi Arabia: President Trump Says Saudi Arabia's King Wouldn't Survive "Two Weeks" Without U.S. Backing
  • 12 hours Superhumans
  • 1 hour Nopec Sherman act legislation
Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Trending Discussions

Oil Market Forecast & Review 26th April 2013

June crude oil surged on the daily and weekly charts, regaining a key support line and setting up the market for further upside action. Before getting too excited, however, keep in mind that the main trend is still down on the weekly chart and will remain in a downtrend until the swing top at $98.06 is taken out with conviction.

One week after taking out the support line of a triangle chart pattern, June crude is trading back inside the triangle, suggesting uncertainty amongst traders. This uncertainty may be being caused by conflicting fundamentals. For several weeks, the market had been attracting selling pressure because of perceptions of a weakening U.S. economy. Bearish traders had been envisioning an increase in supply because of a drop in demand, however, this week’s action suggests otherwise.

Not only did the market rally on a stronger dollar, but the news that U.S. gasoline inventories posted a sharp drop actually helped crude oil post its biggest gain of the year on April 25. The 2.5% rise represented short-covering and new buying as traders speculated the drop in gasoline inventories would lead to increased demand during the spring-summer driving season.

The idea that short-covering may be triggering the rally is being supported by the Commitment of Traders report from April 16. This report showed that small speculators decreased long positions by 8,999 contracts while increasing short positions by 5,579. As of the report date, 362,228…

To read the full article

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

RegisterLogin

Trending Discussions





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