• 5 minutes Rage Without Proof: Maduro Accuses U.S. Official Of Plotting Venezuela Invasion
  • 11 minutes IEA Sees Global Oil Supply Tightening More Quickly In 2019
  • 14 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 10 mins Alberta govt to construct another WCS processing refinery
  • 5 hours What Can Bring Oil Down to $20?
  • 3 mins U.S. Senate Advances Resolution To End Military Support For Saudis In Yemen
  • 5 hours Let's Just Block the Sun, Shall We?
  • 6 hours Venezuela continues to sink in misery
  • 5 hours OPEC Cuts Deep to Save Cartel
  • 3 hours $867 billion farm bill passed
  • 3 hours Regular Gas dropped to $2.21 per gallon today
  • 1 day Sleeping Hydrocarbon Giant
  • 1 day Sane Take on the Russia-Ukraine Case
  • 7 hours Contradictory: Euro Zone Takes Step To Deeper Integration, Key Issues Unresolved
  • 1 hour Global Economy-Bad Days Are coming
  • 7 hours WTO So Set Up Panels To Rule On U.S. Tariff Disputes
Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Are We Looking At A Trend Reversal For Crude?

Barrels

The fundamentals have been light this week, but prices have been active. This is because of the increased volatility in other financial markets, specifically the stock market and the U.S. Dollar.

Fundamentally, U.S. inventories continue to fall, but output continues to rise. As far as OPEC is concerned, there are signs that its plan to limit production and trim the global supply appears to be working. However, buyers are skeptical about its long-term success.

Besides the traditional fundamentals, it is suggested that you start to watch other markets because they may have an impact on the price action. Especially important is the U.S. Dollar and the stock market. Wild swings in the dollar could have an effect on demand for crude oil since the market is a dollar-denominated asset.

A major sell-off in the stock market could also have an effect on crude prices if it leads to margin calls. Hedge funds may be forced to choose between exiting stock positions and raising cash to meet their market calls. This may force them to sell their positions in crude oil to raise the money. Crude oil investors need to be aware of this.

Crude Oil

Weekly October West Texas Intermediate Crude Oil Technical Analysis

(Click to enlarge)

The main trend is down according to the weekly swing chart. The series of lower-tops and lower-bottoms confirm this conclusion. The trend is doing to remain down until buyers are able to generate enough upside momentum…

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