• 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
  • 18 hours Climate Change: A Summer of Storms and Smog Is Coming
  • 17 hours Tension On The Edge: Pakistan Urges U.N. To Intervene Over Kashmir Tension With India
  • 18 hours The Quick Read On MBS's Tour of Pakistan, India And China
  • 17 hours Teens For Climate: Swedish Student Leader Wins EU Pledge To Spend Billions On Climate
  • 18 hours BMW to add 2,000 more jobs at Dingolfing plant
  • 19 hours Iran Starts Gulf War Games, To Test Submarine-Launched Missiles
  • 19 hours Venezuela: Nicolas Maduro closes border with Brazil
  • 2 days 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.
  • 20 hours Saudi A to Splash $100 Bln on India
  • 13 hours Washington Eyes Crackdown On OPEC
  • 15 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

Bearish Factors Are Piling Up For Crude

Bearish Factors Are Piling Up For Crude

May West Texas Intermediate crude oil futures are in a position to finish lower for a second week. The fundamentals are bearish and the weekly technical chart pattern indicates that a key, long-term uptrending Gann angle has been breached. It seems like it’s just a matter of time before the market begins to accelerate to the downside.

The bearish factors are started to pile up and selling pressure is beginning to mount, which could force the hedge funds to start liquidating their massive long positions. Helping to weigh on prices are a stronger U.S. Dollar, signs of an inventory build at the U.S. futures delivery hub in Cushing, Oklahoma, surging U.S. crude production and investor concerns over a potential trade war.

The U.S. Dollar

The dollar is rebounding at the end of the week after a short-term break. This is helping to pressure foreign demand for crude oil. A weaker Euro and expectations for as many as four interest rates hikes this year are helping to underpin the Greenback.

The EIA Report

According to the U.S. Energy Information Administration, U.S. crude inventories rose by 2.4 million barrels in the week-ended March 2, compared with analysts’ expectations for an increase of 2.7 million barrels.

Crude stocks at the Cushing, Oklahoma, delivery hub fell by 605,000 barrels, the EIA said, the 11th straight week of declines.

Weekly data from the U.S. Department of Energy also showed weekly U.S. crude production hit a…

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