• 3 minutes Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 6 minutes This Battery Uses Up CO2 to Create Energy
  • 10 minutes Phase One trade deal, for China it is all about technology war
  • 12 minutes Trump has changed into a World Leader
  • 3 hours Shale Oil Fiasco
  • 2 hours We're freezing! Isn't it great? The carbon tax must be working!
  • 9 mins Angela Merkel take notice. Russia cut off Belarus oil supply because they would not do as Russia demanded
  • 4 hours Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 2 hours Might be Time for NG Producers to Find New Career
  • 1 day China's Economy and Subsequent Energy Demand To Decelerate Sharply Through 2024
  • 22 hours Swedes Think Climate Policy Worst Waste of Taxpayers' Money in 2019
  • 1 day Wind Turbine Blades Not Recyclable
  • 1 day Prototype Haliade X 12MW turbine starts operating in Rotterdam
  • 3 hours US Shale: Technology
  • 6 hours Indonesia Stands Up to China. Will Japan Help?
  • 1 day Denmark gets 47% of its electricity from wind in 2019
Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Summer Selloff in Energy Futures Markets Coming to an End?

Summer Selloff in Energy Futures Markets Coming to an End?

The price action late this week in the three major futures energy markets: crude oil, gasoline and natural gas, suggests the summer sell-off may be nearing its end. Keep in mind that only the daily charts are showing signs of short-term bottoming action. The longer-term weekly and monthly charts still have downside biases.

For the most part, the trading action is being fueled by technical chart factors and not by fundamental factors. Technically, these three markets are oversold. This means that the size of the sellers on the offer is shrinking, shifting the edge to the bid side, or the buyers. The buying is being triggered by profit-taking and aggressive bottom picking.

Some of the profit-taking is related to fund buying. These money managers may be trying to book profits before the end of the quarter to enhance their performance and avoid giving back the substantial profits generated by the summer-long break.

Crude Oil

Fundamentally, West Texas Intermediate crude oil futures rebounded this week after a weekly government report showed a larger-than-expected fall in U.S. crude oil inventory.

According to the Energy Information Administration (EIA), U.S. commercial crude oil inventories decreased by 4.5 million barrels for the week-ended August 15. Traders were looking for a drawdown of 1.3 million barrels. Although this drawdown did not put much of a dent into the total inventory, it did give short-sellers an excuse to begin booking profits…




Oilprice - The No. 1 Source for Oil & Energy News