• 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
  • 1 hour Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 4 hours How To Explain 'Truth Isn't Truth' Comment of Rudy Giuliani?
  • 9 hours Saudi PIF In Talks To Invest In Tesla Rival Lucid
  • 7 hours China still to keep Iran oil flowing amid U.S. sanctions
  • 11 hours Japan carmakers admits using falsified emissions data
  • 2 hours Starvation, horror in Venezuela
  • 25 mins Corporations Are Buying More Renewables Than Ever
  • 29 mins Saudi Fund Wants to Take Tesla Private?
  • 8 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 9 hours Western Canada Select price continues to sink
  • 9 hours China goes against US natural gas
  • 6 hours Are Trump's steel tariffs working? Seems they are!
  • 2 hours The Discount Airline Model Is Coming for Europe’s Railways
Alt Text

Why China Will Continue To Buy Iranian Crude

While the United States sanctions…

Alt Text

The One Oil Industry That Isn’t Under Threat

While plastic has been the…

Martin Tillier

Martin Tillier

More Info

Trending Discussions

How Significant Is WTI’s Breakout?

Permian

Oil, after looking rangebound for a while, albeit at the highest levels since 2014, looks like it has broken out. When WTI futures challenged February’s high of $66.66 a few weeks ago, we reached $66.55 before retreating rapidly, a pattern that reinforced the resistance level and suggested that we would head lower again. A couple of days ago, however, we broke through and have been trading above that point for three days now. That confirms that WTI has broken out of its range, but the lack of follow through since suggests that this may not be all that significant. An analysis of the reasons for the breakout and the price action since, however, suggest that it will be.

(Click to enlarge)

The first question that heeds to be answered is how significant any technical signal is in the longer term. The answer is not very. Even big-picture, clearly visible technical analysis such as this can only take you so far. The break of a level often triggers stop loss orders clustered around it, so can cause a quick jump that traders can exploit intraday, but over time more powerful fundamental forces hold sway. It is those fundamentals that forced oil higher this week.

The demand factors that have been in play for nearly a year now are well known. Improving global and U.S. growth suggest higher oil demand and the market has reacted accordingly. What changed this week, however, was the supply side of the equation. Conventional wisdom has held that that was a…

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