• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 6 mins EU has already lost the Trump vs. EU Trade War
  • 11 hours Impeachment S**te
  • 5 hours More dumbed down? re Hong Kong Act of Congress
  • 18 hours 55.00 WTI
  • 1 hour Article: Did Exxon only make $39 Million onshore U.S. last quarter ?
  • 3 hours Visualizing Pennsylvania Oil & Gas Production (Through September 2019)
  • 2 days IEA predicts oil demand will grow annually at 1 million barrels a day for the next 5 years
  • 2 days Crazy Stories From Round The World
  • 4 hours U.S. Shale To Break Records Despite Bearish Rhetoric
  • 1 day Everything You Need To Know About Trump
  • 3 hours Pope Proposes New Sin: Thou Shalt Not Destroy The Harmony Of The Environment
  • 20 hours Water, Trump, and Israel’s National Security
  • 3 days Science: Only correct if it fits the popular narrative
  • 2 days ‘If it saves a life’: Power cut to 1.5 million Californians
  • 1 day Last I Checked
Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

The Waiting Game Is On – When To Expect A Breakout?

March West Texas Intermediate Crude Oil futures are trading inside last week’s and the previous week’s range, suggesting investor indecision and impending volatility. Since the first of the year, the price action can best be described as balanced.

The balanced price action can be attributed to two factors, the OPEC/non-OPEC plan to cut output and the rising U.S. production.

Helping to underpin the market this week is the news that OPEC and non-OPEC members are complying with the plan to reduce output. A report early in the week said that the nations involved in the program have reduced output by about 1.5 million barrels per day versus the 1.8 million barrels pledged.

Helping to put a cap on the market is the news of increased U.S. oil production. According to the U.S. Energy Information Administration, crude oil stockpiles rose by 2.8 million barrels in the week-ending January 20, roughly in line with expectations. The EIA also reported that gasoline stocks rose by 6.8 million barrels, versus a 498,000-barrel gain estimate. Distillate stockpiles also increased by 76,000 barrels, versus expectations for a 1 million-barrel drop.

Other than the weekly chart pattern, there is nothing in the fundamentals to suggest a breakout in either direction is imminent. I just know from reading charts that the current pattern indicates we are going to see a volatile move over the near-term. However, the charts can’t tell us the direction.

Typically…




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