• 4 minutes Tariffs to derail $83.7 Billion Chinese Investment in West Virginia
  • 9 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 17 minutes Kaplan Says Rising Oil Prices Won't Hurt US Economy
  • 21 mins Saudi Arabia plans to physically cut off Qatar by moat, nuclear waste and military base
  • 8 hours Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 46 mins Could Venezuela become a net oil importer?
  • 24 hours Corruption On The Top: Netanyahu's Wife Charged With Misuse of Public Funds for Meals
  • 10 hours Why is permian oil "locked in" when refineries abound?
  • 3 hours Saudi Arabia turns to solar
  • 1 min Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 hours Teapots Cut U.S. Oil Shipments
  • 12 hours Oil prices going down
  • 35 mins China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 17 hours Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 13 hours Hot line, Macron: Phone Calls With Trump Are Like Sausages Best Not To Know What Is Inside
  • 1 day U.S. Withdraws From U.N. Human Rights Council
  • 2 hours EVs Could Help Coal Demand
  • 23 hours EU Confirms Trade Retaliation Measures vs. U.S. To Take Effect on June 22
  • 13 hours Putin Says 'Fierce' U.S. Politics Hindering Summit With Trump
Alt Text

Oil Markets Unmoved By North Korea Summit

Today’s North Korea summit, and…

Alt Text

Rig Count Falters Amid Oil Price Correction

The rig count slipped on…

Alt Text

China Plans To Create A $78 Billion Natural Gas Giant

Chinese regulators are looking to…

Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Trending Discussions

Prepare For Bearish News As OPEC Meets Next Week

OPEC

It’s been an up and down week for crude oil futures with the price action playing out as expected. Going into the new year, we were looking for a choppy, two-sided traded largely because of the uncertainty regarding compliance with the OPEC/Non-OPEC plan to cut production, trim supply and return price stability to the market.

On the upside, we expected prices to be capped by rising U.S. production, while on the downside, prices were expected to be supported by reports that countries who had agreed to limit production would announce compliance with the plan. Based the price action this week, we can conclude that we’ve seen a little of both.

Weekly West Texas Intermediate Crude Oil

The main trend is up according to the weekly swing chart. However, momentum has been sideways for the last four weeks. A trade through $56.24 will signal a resumption of the uptrend. A trade through $44.49 will change the trend to down.

Given the average weekly range, it’s pretty safe to say the uptrend is safe next week.

The major 50% to 61.8% retracement zone is $50.69 to $54.25. The market is currently straddling this zone and to be specifically, it is straddling the Fibonacci level at $54.25.

Based on the price action since December 16, the direction of March Crude Oil next week will be determined by trader reaction to the Fib level at $54.25.

(Click to enlarge)

Bearish Scenario

A sustained move under $54.25…

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