• 3 minutes China's aggression is changing the nature of sovereignty.
  • 8 minutes Will Variants and Ill-Health Continue to Plague Economic Outlooks?
  • 11 minutes Europe gas market -how it started how its going
  • 46 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 18 hours Russia, Ukraine and "2022: The Year Ahead"
  • 2 days Why is oil priced and traded in U.S. dollars?
  • 2 days Ukrainian Maidan after 8 years
  • 2 days Russia oil production live month after month starting from November 2021 - official stats from Rosstat agency
  • 3 days Amazing!...see article: "Turkmenistan To Close "Gates Of Hell" Gas Fire" by Irina Slav
Oil Boom In South America Boosts FPSO Demand

Oil Boom In South America Boosts FPSO Demand

Floating production, storage and offloading…

Oil Prices Inch Higher Despite Large Gasoline Build

Oil Prices Inch Higher Despite Large Gasoline Build

Crude prices fell slightly this…

Editorial Dept

Editorial Dept

More Info

Premium Content

Will Oil’s Upward Trend Hold?

Last week, I suggested a trade that bracketed crude, going long on a break above $70 or short should CL drop below $67. That worked out well as a break above $70 was followed by a surge to over $73. I made good money on that and I hope you did too, but now we have fallen back again, are in mid-channel once more, and I find myself looking around for inspiration.

I make a living by having opinions, both as a trader and as a writer, so it is not often that I give in and say I don’t know where a market is headed. That, however, is the case with crude right now. The retreat from the July $76.98 high in CL looked for a while to be taking the form of a wide but conventional descending channel, then that all disappeared this week with the strong break back above $70. That move, however, couldn’t be sustained, as crude has given back around 2% over the last couple of days. Now we are stuck in the middle of an unconfirmed upward trend and could break either way…

It is little wonder that the chart for CL is a bit confusing because the fundamental supply and demand picture that drives longer-term trends is itself unclear.

Supply is still somewhat restricted, as it has been all year. OPEC+ didn’t reinstate the full output cuts as the Delta variant causes a global resurgence of Covid-19, but they did keep the current schedule of only gradual reinstatement of the emergency, pandemic prompted cuts. That means that while output is increasing,…





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News