• 9 minutes WTI @ 67.50, charts show $62.50 next
  • 11 minutes The EU Loses The Principles On Which It Was Built
  • 19 minutes Batteries Could Be a Small Dotcom-Style Bubble
  • 3 mins Saudi Fund Wants to Take Tesla Private?
  • 1 min Downloadable 3D Printed Gun Designs, Yay or Nay?
  • 4 hours Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 1 hour Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 7 hours Saudi PIF In Talks To Invest In Tesla Rival Lucid
  • 6 hours CO2 Emissions Hit 67-Year Low In USA, As Rest-Of-World Rises
  • 16 hours How To Explain 'Truth Isn't Truth' Comment of Rudy Giuliani?
  • 14 hours Starvation, horror in Venezuela
  • 12 hours Corporations Are Buying More Renewables Than Ever
  • 18 hours Is NAFTA dead? Or near breakthrough?
  • 18 hours China still to keep Iran oil flowing amid U.S. sanctions
  • 17 hours Are Trump's steel tariffs working? Seems they are!
  • 8 hours Film on Venezuela's staggering collapse
Alt Text

Crude-By-Rail Could Save The Permian Boom

Crude-by-Rail (CBR) has been a…

Alt Text

EIA: U.S. Oil Production Growth Is Slowing

The EIA has revised down…

Alt Text

The $80 Billion Megaproject Splurge In Oil

The growing lineup of megaprojects…

Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Trending Discussions

Subtle Signs Emerging That A Bottom Is Near

Crude Oil Outlook

Oversupply continued to make it hard for crude oil to find a bottom last week although technical analysis factors did manage to help halt the slide at $53.94 at least temporarily. The bottoming action was strong enough to take out the previous day’s high for the first time since November 21. This doesn’t mean much to the big picture, but prolonged short-covering rallies have started from this simple chart formation.

Other than bouncing off a five-year low, the crude oil market was very tame this week. Volatility was low and the price action was orderly. This may be a sign that we are close to a bottom since a volatile market typically indicates there are large buyers still coming in to disrupt the selling process. In other words, the weak buying this week may have been the proverbial “throwing in the towel” for the last of the bottom-pickers.

This is a good development because it may mean the market may be coming close to running out of buyers which usually triggers the start of a short-covering rally. The shorts tend to panic because they have no one left to sell to in order to perpetuate the downtrend. This then causes them to buy back previously sold contracts in an aggressive fashion.

As I mentioned last week, this market isn’t going to bottom and turn higher because of a big buyer, it will do so because the shorts will decide to cover when they finally decide the risk of holding a short position…

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