• 4 minutes THE GREAT OIL PRICE PREDICTION CHALLENGE OF 2018
  • 9 minutes Time For Reaction: Trump Presses OPEC to Reduce Prices as Crude Trades Near $80
  • 15 minutes Nothing new in Middle East? Iran Puts On 'Show Of Strength' Military Exercise In Gulf
  • 1 hour So oil touched $80! (WTI break $71 twice). What does the future hold?
  • 19 mins Global Hunger Continues to Grow Driven By Climate Change
  • 6 hours Why Are the Maldives Still above Sea Level?
  • 1 hour Praise for Alberta
  • 32 mins Downloadable 3D Printed Gun Designs, Yay or Nay?
  • 6 hours China Tariff Threatens U.S. LNG Boom
  • 5 hours Freedom Of Internet: Google Plans Censored Version Of Search Engine In China!
  • 18 hours Toyota Agreed To Add Android Auto To Its Vehicles
  • 1 day Robots Roam the Seafloor Looking for Mineral Resources
  • 4 hours Lack of Global Warming Messes with Russian Arctic LNG Plans
  • 1 day Transition Time: Volkswagen Announces "Electric for All" Campaign
  • 1 day Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 10 hours Regime For Regime: China Says Willing To Provide Venezuela With What Help It Can
  • 12 hours Jan's Electric bike replaces electric cars
Alt Text

Are Flying Taxis Just 4 Years Away?

A British entrepreneur’s unicorn startup,…

Alt Text

U.S. Becomes Top Oil Producer Globally

The U.S. became the largest…

Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Trending Discussions

Is This Small Correction In Oil Something To Worry About?

Trading Screen

Despite crossing to the strong side of a long-term 50% level earlier in the week to extend the rally, the price action late in the week strongly suggests that March West Texas Intermediate crude oil may have finally found enough resistance and selling pressure to form a top and fuel the start of a short-term correction.

Since early December, crude oil has been on a tear as investors began to buy into the idea that the OPEC-led production cuts could tighten supply over the long-run. If you look at the timing of the price surge, however, you’ll notice that the breakout to the upside was largely fueled by a steep drop in the U.S. Dollar, which helped boost all dollar-denominated commodities like crude oil and gold.

Furthermore, exchange statistics show that hedge funds and other large speculators had been taking on huge long positions, providing the upside momentum the market needed to sustain the rally.

Along the way, the rally was further underpinned by a pipeline shutdown in the North Sea and a pipeline explosion in Libya.

Seven consecutive weeks of drawdowns in U.S. crude oil supply have also had a positive influence on prices.

The plethora of bullish news gave the hedge funds the confidence to continue to build on their long positions week after week despite lingering worries over increasing U.S. production. Hedge fund willingness to buy strength drove the upside momentum into multi-year highs. Traders weren’t playing for dips in…

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