• 4 minutes What will the future hold for nations dependent on high oil prices.
  • 7 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 12 minutes OPEC Cuts Deep to Save Cartel
  • 15 minutes Venezuela continues to sink in misery
  • 2 hours End of EV Subsidies?
  • 2 hours Maersk's COO statment.
  • 7 hours Citi cuts Apple's price target
  • 8 hours Asian stocks down
  • 3 hours Japan Effectively Bans China’s Huawei, ZTE From Government Contracts, Joining U.S
  • 5 hours USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 1 hour GOODBYE FOREIGN OIL DEPENDENCE!!
  • 13 hours China Builds LNG Icebreaker
  • 4 hours Oil prices may go up, but will be below $70 a barrel in FY19: Hindustan Petroleum Chairman
  • 15 hours EPA To Roll Back Carbon Rule On New Coal Plants
  • 13 hours Price Decline in Chinese Solar Panels
  • 5 hours Regular Gas dropped to $2.21 per gallon today
Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

How Much Further Oil Could Fall

It’s been a relatively quiet week in the crude oil market with prices continuing to drift lower in search of a balance point. The stories driving the price action didn’t change much last week. Compliance with OPEC and non-OPEC member plans to cut production, trim the global supply and stabilize prices remains intact. At the same time, U.S. production continues to remain high, offsetting OPEC’s efforts.

Late in the week, the Saudis may have made a feeble attempt to spark a rally when they announced a cut in exports to the United States in March by around 300,000 barrels per day from February, but speculators didn’t bite on the news.

A plunging U.S. Dollar also had a limited effect on prices despite theoretically making dollar-denominated crude oil attractive to foreign buyers.

Hedge and commodity funds likely pulled back a little on their liquidation plans. At least that is what the price action is telling us.

All-in-all, it looks as if crude traders have become content with holding prices in a range once again, but this time at much lower prices than earlier in the year. And like earlier in the year, this may mean 8 to 12 weeks of consolidation before the next major move. During this time frame, we’re going to learn whether OPEC wants to extend its plan to curtail production, or if U.S. output will continue to remain steady, pushing supplies to new records.

If prices remain under pressure then this will indicate that…

To read the full article

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

RegisterLogin

Trending Discussions




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