• 3 minutes Will Variants and Ill-Health Continue to Plague Economic Outlooks?
  • 6 minutes Forecasts for Natural Gas
  • 14 minutes NordStream2
  • 5 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 5 hours Communist China Declared War on the US Long Ago Part 1 of the 2-part series: The CCP's War on America
  • 3 hours China's aggression is changing the nature of sovereignty.
  • 7 hours Delta variant in European Union
  • 2 days Ukrainian Maidan after 8 years
  • 13 hours President Biden’s Nuclear Option Against OPEC+ - Waste of Time
  • 4 days OPEC+ Expects Large Oil Glut In Early 2022
  • 4 days Microbes can provide sustainable hydrocarbons for the petrochemical industry
  • 2 days Сryptocurrency predictions
  • 4 days CO2 Electrolysis to CO (Carbon Monoxide) and then to Graphite
  • 3 days Hunter Biden Helped China Gain Control of Cobalt Mines in Africa
Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Hedge Funds Hold The Cards For The Next Move In Oil

January West Texas Intermediate crude oil futures are showing a muted response to the news that the OPEC-led group agreed to extend their production cuts in a widely expected move designed to trim the supply glut and stabilize prices.

OPEC and non-OPEC producers led by Russia on Thursday agreed to continue the production cuts until the end of 2018, while also signaling a possible early exit from the deal if the market overheats.

WTI crude oil traders reacted as if the OPEC news had been fully-priced into the market. The WTI futures contract is holding above a key area on the daily chart at $57.03 to $56.55, indicating the presence of buyers. A sustained move $57.03 will be bullish, a sustained move under $56.55 will be bearish over the near-term.

(Click to enlarge)

The daily swing chart indicates there is plenty of room to the upside if $59.05 is taken out with conviction. If this attracts increasing volume then we could see an eventual move into the July 14, 2015 main top at $61.88.

On the downside, the main trend will change to down on a trade through $56.75. After clearing this price and the short-term Fibonacci level at $56.55 when we could see the start of a steep break with the first target a support cluster at $55.07 to $55.00.

According to Kiyoshi Homma, a director at Japanese refiner Idemitsu Kosan, “Oil prices are likely to hover around current levels till next June, when stockpiles would be optimized through continued…




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