• 6 minutes Trump vs. MbS
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes WTI @ $75.75, headed for $64 - 67
  • 9 hours Satellite Moons to Replace Streetlamps?!
  • 1 day US top CEO's are spending their own money on the midterm elections
  • 3 hours EU to Splash Billions on Battery Factories
  • 7 hours U.S. Shale Oil Debt: Deep the Denial
  • 15 hours The Balkans Are Coming Apart at the Seams Again
  • 1 day OPEC Is Struggling To Deliver On Increased Output Pledge
  • 3 hours The Dirt on Clean Electric Cars
  • 2 hours Owning stocks long-term low risk?
  • 1 day Uber IPO Proposals Value Company at $120 Billion
  • 17 hours 47 Oil & Gas Projects Expected to Start in SE Asia between 2018 & 2025
  • 1 day A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 1 day 10 Incredible Facts about U.S. LNG
  • 1 day U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
Alt Text

Goldman Sachs: This Is The Next Big Risk For Oil

Goldman Sachs commodities expert Jeffrey…

Alt Text

Oil Experts Divided As Iran Sanctions Loom

The world’s top oil trading…

Alt Text

Oil Prices Subdued, But For How Long?

Oil prices may have closed…

Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Trending Discussions

Oversold Markets Corrected After Saudi Comments

Crude oil futures followed through to the upside this week, confirming the previous week’s potentially bullish closing price reversal bottom. From the fundamental side, the catalyst behind the rally was speculation that oil producers would discuss potential action to stabilize oil prices during a meeting next month in Algeria.

The comments came at a perfect time when the market was technically oversold. Based on the price action, it appears the news gave short-sellers an excuse to book profits, leading to the powerful short-covering rally. One could also build a case for fresh longs returning to the market since the rally started inside a major retracement zone also known as a value area.

In addition to the comments from Saudi Arabia’s energy minister Khalid al-Falih that fueled the strong rally on August 11, the market also received support from a new outlook published by the International Energy Agency (IEA) that said it expected the supply and demand balance to tighten towards year-end also supported prices.

Finally, from the bullish side of the equation, news of a drop of 8.1 percent in China’s oil output in July, to a five-year low of 16.72 million tons also boosted prices because it implied that Asia’s biggest economy has to import more crude.

Bearish traders cite two key reasons why the current rally is not likely to last. Firstly, the crude oil glut still exists and secondly, in order to be bullish, there would also need…

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