• 5 minutes Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 10 minutes Iranian Sanctions - What Are The Facts?
  • 15 minutes U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 3 mins Can the World Survive without Saudi Oil?
  • 16 hours U.S. - Saudi Arabia: President Trump Says Saudi Arabia's King Wouldn't Survive "Two Weeks" Without U.S. Backing
  • 2 hours Sears files Chapter 11
  • 2 hours Natural disasters and US deficit
  • 15 hours How High Can Oil Prices Rise? (Part 2 of my previous thread)
  • 1 min China Is the Climate-Change Battleground
  • 2 days COLORADO FOCUS: Stocks to Watch Prior to Midterms
  • 2 days $70 More Likely Than $100 - YeeeeeeHaaaaa
  • 13 hours German Voters Set to Punish Merkel’s Conservative Bloc
  • 1 day How Long Until We Have Working Nuclear Fusion Reactor?
  • 2 days China Tariff Threatens U.S. LNG Boom
  • 14 hours Saudi A Threatens to Block UN Climate Report
  • 8 hours Threat: Iran warns U.S, Israel to expect a 'devastating' revenge
  • 3 days China Thirsty for Canadian Crude
Alt Text

What’s Next For Oil Prices?

Oil markets will continue to…

Alt Text

Oil Prices Subdued, But For How Long?

Oil prices may have closed…

Alt Text

Fear Has Driven Oil Prices Too High

The calls for $100 oil…

Martin Tillier

Martin Tillier

More Info

Trending Discussions

Looking For A Pattern In Choppy Oil Markets

We, as human beings, love to look for order. We have a problem accepting that not everything falls into neat patterns, so we go back, look at what happened in the past, and retroactively apply patterns to it. An awareness of that tendency is why I am naturally skeptical of much of the overcomplicated technical analysis that is popular amongst retail traders. Put simply, just because A led to B and C in the past doesn’t, in any logical way, mean it will in the future.

That said, though, at times patterns can be observed that seem to happen for a perfectly logical reason and, at least until everybody is aware of them, they can provide a trading opportunity. Such a pattern has emerged in the recent chaos of the oil futures market, and looks like providing an opportunity for the next couple of weeks at least.

The pattern has come as a result of the fact that there are two inventory numbers released for U.S. crude each week; on Tuesdays at 4:30 pm the private American Petroleum Institute (API) releases their estimate of stockpiles, and the following day at 10:30 AM the official government numbers are released by the Energy Information Agency (EIA) which is marked by the red vertical lines on the chart below. The discrepancy between these numbers has created a pattern that is worth trading.

(Click to enlarge)

What has happened in each of the last four weeks is that the API has released a terrible number, suggesting massive stockpiles of crude…

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