• 3 minutes Biden Seeks $2 Trillion Clean Energy And Infrastructure Spending Boost
  • 6 minutes Pompeo upsets China; oil & gas prices to fall
  • 11 minutes The Secret China Iran Oil Deal At The Heart Of One Belt One Road Project
  • 37 mins Trump Suggests Delaying Election Amid Fraud Claims
  • 30 mins The World is Facing a Solar Panel Waste Problem
  • 54 mins While U.S. Pipelines Are Under Siege, China Streamlines Its Oil and Gas Network
  • 16 hours End Game For Oil? OPEC Prepares For An Age Of Dwindling Demand
  • 30 mins Rational analysis of CV19 from Harvard Medical School
  • 35 mins Trumpist lies about coronavirus too bad for Facebook - BANNED!
  • 24 hours Trump Hands Putin Major Geopolitical Victory
  • 11 hours Biden admits he has been tested for Cognitive Decline several times. Didn't show any proof of test results.
  • 1 hour Why Oil could hit $100
  • 2 days Enough is Enough...
  • 10 hours Gazprom fails to exempt Nord Stream-2 from EU market rules
Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Oil Prices Could Straddle This Zone For A While Yet

Fundamental Analysis

November Crude Oil futures are in a position to finish flat to slightly lower this week, however, the chart pattern suggests that momentum is building to the downside. The market is pressing a short-term retracement zone which is slowing down the selling pressure. Additionally, buyers appear to be using this area as a support zone. The short-term direction of the market is likely to be determined by trader reaction to this zone.

To be more specific, crude oil has straddled the 50% level of the retracement zone at $44.28 the last four weeks. This is essentially balancing action which is being caused by both bullish and bearish fundamentals. In other words, traders aren’t sure which way they want to take the market although this week’s fourth-consecutive lower close suggests there is a growing bias to the downside.

This week’s Energy Information Administration inventories report supports the conclusion that traders are facing conflicting fundamentals or may be waiting for more definitive data that supports the case that a longer-term trend is developing.

On Wednesday, September 23, the EIA’s report for the week-ending September 18 showed a larger than expected drawdown. Crude oil stocks came in down 1.9 million barrels. Traders had priced in a 1.0 million barrel decline. This was the bullish news.

This bullish news was offset by a larger-than-expected build in gasoline stockpiles. According to the EIA,…




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