• 4 minutes US-backed coup in Venezuela not so smooth
  • 7 minutes Why Trump will win the wall fight
  • 11 minutes Oil imports by countries
  • 13 minutes Maduro Asks OPEC For Help Against U.S. Sanctions
  • 14 hours Climate Change: A Summer of Storms and Smog Is Coming
  • 13 hours Tension On The Edge: Pakistan Urges U.N. To Intervene Over Kashmir Tension With India
  • 14 hours The Quick Read On MBS's Tour of Pakistan, India And China
  • 13 hours Teens For Climate: Swedish Student Leader Wins EU Pledge To Spend Billions On Climate
  • 15 hours Iran Starts Gulf War Games, To Test Submarine-Launched Missiles
  • 15 hours Venezuela: Nicolas Maduro closes border with Brazil
  • 13 hours BMW to add 2,000 more jobs at Dingolfing plant
  • 1 day Amazon’s Exit Could Scare Off Tech Companies From New York
  • 1 day Itt looks like natural gas may be at its lowest price ever.
  • 16 hours Saudi A to Splash $100 Bln on India
  • 9 hours Washington Eyes Crackdown On OPEC
  • 11 hours Indian Oil Signs First Annual Deal For U.S. OilIndian Oil Signs First Annual Deal For U.S. Oil
  • 1 day NEW FERUKA REFINERY
Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Uncertainty Hits Markets Ahead Of OPEC Meeting

Rig

Crude oil futures were under pressure this week after reports showed large weekly builds in U.S. petroleum products and forecasts by the International Energy Agency and OPEC indicated the global crude glut could continue to build into early 2017.

December crude oil futures fell on the news and are expected to finish the week lower. Gasoline futures posted an inside range and are in a position to close the week higher. Heating oil futures also survived negative news and are within striking distance of finishing the week unchanged.

On paper, the Energy Information Administration’s report for the week-ending September 9 looked bullish for crude oil and bearish for the products, but that assessment isn’t showing up on the charts.

What the charts do show are markets trying to hold on to the bullishness from the first half of the year. I can’t see a bear market developing despite the new forecasts, but I do see evidence that traders are looking forward enough to realize that there is hope for stabilization of production and that eventually this supply glut will go away or at least become contained.

The price action also seems to suggest that traders have become immune to the government and private sector reports. This may be why the markets have been rangebound. The theme seems to be, “hold the market in a range then react to the reports then hold the market in a range”.

It could just be the OPEC meeting at the end of the…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin



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