• 3 minutes This Battery Uses Up CO2 to Create Energy
  • 5 minutes Shale Oil Fiasco
  • 9 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 12 minutes Historian Slams Greta. I Don't See Her in Beijing or Delhi.
  • 14 hours Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 1 min Which type of Hegemony will China follow
  • 3 hours China gets caught?
  • 4 hours Demand for Diesel vs. Oil
  • 17 hours Yesterday POLEXIT started (Poles do not want to leave EU, but Poland made the decisive step towards becoming dictatorship, in breach of accession treaty)
  • 22 mins Us Shale: Moving the US shale revolution forward
  • 2 days Here is Why People Lose Money Trading Natural Gas
  • 18 hours Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 1 day Tesla Will ‘Disappear’ Or ‘Lose 80%’ Of Its Value
  • 2 days Let’s take a Historical walk around the Rig
  • 2 days US Shale: Technology
  • 2 days Governments that wasted massive windfalls

Breaking News:

Oil Prices Rise On Surprise Crude Draw

Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Technical Analysis: Was This Just A Correction?

rig

U.S. West Texas Intermediate crude oil plunged earlier in the week on worries that escalating trade tensions between the United States and China could hurt oil demand, and news that Libya would reopen its ports raised expectations of growing supply.

The price action was dramatic on the daily chart. It even changed the trend to down. However, while this week’s movement is easily spotted on the weekly chart, there has been no change in trend and it looks like a normal 50% correction in a bull market.

What Happened?

The markets were under pressure before the regular session opening on Wednesday in reaction to the release of a new list of tariffs on China by the United States. This raised the possibility that China would retaliate by slapping a tariff on imports of U.S. crude oil. This action would substantially weaken demand for U.S. WTI crude oil.

Prices were further pressured after U.S. Secretary of State Mike Pompeo said on Tuesday that Washington would consider requests from some countries to be exempt from sanctions due to go into effect in November to prevent Iran from exporting oil.

Washington had previously said countries must halt all imports of Iranian oil from November 4 or face U.S. financial restrictions, with no exemptions. So the Pompeo announcement came as a surprise for those holding long futures contracts.

The first two events set the table for the steep sell-off, which was triggered after Tripoli-based Libya National…




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