• 4 minutes Tariffs to derail $83.7 Billion Chinese Investment in West Virginia
  • 9 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 17 minutes Kaplan Says Rising Oil Prices Won't Hurt US Economy
  • 15 hours Kaplan Says Rising Oil Prices Won't Hurt US Economy
  • 1 day Tariffs to derail $83.7 Billion Chinese Investment in West Virginia
  • 4 hours Saudi Arabia turns to solar
  • 4 hours Corruption On The Top: Netanyahu's Wife Charged With Misuse of Public Funds for Meals
  • 9 hours Could oil demand collapse rapidly? Yup, sure could.
  • 5 hours Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 7 hours Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 10 hours Gazprom Exports to EU Hit Record
  • 6 hours U.S. Withdraws From U.N. Human Rights Council
  • 10 hours OPEC Meeting Could End Without Decision - Irony Note Added from OPEC Children's Book
  • 14 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 8 hours What If Canada Had Wind and Not Oilsands?
  • 8 hours "The Gasoline Car Is a Car With a Future"
  • 3 hours EU Confirms Trade Retaliation Measures vs. U.S. To Take Effect on June 22
  • 21 hours EVs Could Help Coal Demand
  • 9 hours Sell out now or hold on?
Alt Text

Was This Just A Temporary Pullback In Oil?

Technical analysis shows that despite…

Alt Text

Iran: Oil Prices Could Jump To $140 On U.S. Sanctions

Iran’s OPEC governor Hossein Kazempour…

Martin Tillier

Martin Tillier

More Info

Trending Discussions

Oil Prices: Fundamental And Technical Analysis Conflict

Analysis of markets of any kind, stocks, bonds, currencies or commodities basically falls into one of two categories, fundamental and technical. In an ideal world both types of analysis support trading in a particular direction. When that is the case the short term moves that technical analysis usually indicates can be used to set up a longer-term position that allows you to take advantage of the fundamental picture. Sometimes, however, it is not that simple as each way of looking at things indicates a move in a different direction. That is where we are at right now in WTI, and that raises the question of which to believe. The answer is both.

In the oil market, fundamental analysis deals with what I usually refer to as “big picture” matters. These are the things that have a bearing on the most basic drivers of price: supply and demand. They include macro issues such as the prospects for world economic growth, and the domestic regulatory environment as well as more specific factors such as output levels and stockpiles both here and overseas. From that perspective, the dispute between Saudi Arabia and Qatar calling the OPEC agreement to restrict production into question, an oil friendly White House and Congress, a recent wobble in growth and a series of terrible inventory reports all point to further drops in WTI.

Technical analysis, on the other hand, is concerned with reading charts and predicting moves based on previous pricing patterns. As you would…

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