• 9 minutes WTI @ 67.50, charts show $62.50 next
  • 11 minutes The EU Loses The Principles On Which It Was Built
  • 19 minutes Batteries Could Be a Small Dotcom-Style Bubble
  • 3 mins Saudi Fund Wants to Take Tesla Private?
  • 1 min Downloadable 3D Printed Gun Designs, Yay or Nay?
  • 4 hours Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 1 hour Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 7 hours Saudi PIF In Talks To Invest In Tesla Rival Lucid
  • 6 hours CO2 Emissions Hit 67-Year Low In USA, As Rest-Of-World Rises
  • 16 hours How To Explain 'Truth Isn't Truth' Comment of Rudy Giuliani?
  • 14 hours Starvation, horror in Venezuela
  • 12 hours Corporations Are Buying More Renewables Than Ever
  • 18 hours Is NAFTA dead? Or near breakthrough?
  • 18 hours China still to keep Iran oil flowing amid U.S. sanctions
  • 17 hours Are Trump's steel tariffs working? Seems they are!
  • 8 hours Film on Venezuela's staggering collapse
Alt Text

Saudi Arabia And Iran Reignite The Oil Price War

As U.S. sanctions on Tehran…

Alt Text

Oil Markets Are In For A Bumpy Ride

After a somewhat quiet summer,…

Alt Text

Iran’s Latest Tactic To Save Market Share

Iran cut oil prices for…

Martin Tillier

Martin Tillier

More Info

Trending Discussions

Oil Looks Set to Go Lower Again, But This Refiner is Still A Good Buy

Oil, or rather the price of WTI, is at a critical level. Lower U.S. production numbers this week have given the black stuff a boost and pushed it back to challenge the resistance level just above $60 for the third time since falling below the mark in December of last year. It is an old adage of dealers that the third test of a chart point is the most important. It gives the best chance of a breakout, but if the resistance or support holds it usually signals a fairly sharp move in the opposite direction.



(Click to enlarge)

In other words if this rally peters out, then a drop back down, even as far as the mid-$40s support, looks likely. That scenario is even more likely given the fundamental, big-picture outlook. Earlier this week we learned that Saudi oil exports had actually risen, indicating that OPEC still has no plans to cut production in support of the price. In addition, the fall in U.S. production may not have been what it seemed at first. Much of the drop came from established plays, such as Alaska rather than the fracking areas, and inventories stayed high despite the fall.

All in all then it seems that the supply/demand imbalance that contributed to the big drop is still in place. That might not matter so much if the dollar weakened significantly, but despite a correction over the last few weeks that looks unlikely. The fundamental factors that caused the dollar strength are still there: QE or its equivalent in Japan and Europe, and none…

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