• 6 minutes U.S. - Saudi Arabia: President Trump Says Saudi Arabia's King Wouldn't Survive "Two Weeks" Without U.S. Backing
  • 10 minutes Iranian Sanctions - What Are The Facts?
  • 15 minutes U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 2 hours Can the World Survive without Saudi Oil?
  • 10 hours How High Can Oil Prices Rise? (Part 2 of my previous thread)
  • 2 days COLORADO FOCUS: Stocks to Watch Prior to Midterms
  • 1 day $70 More Likely Than $100 - YeeeeeeHaaaaa
  • 9 hours German Voters Set to Punish Merkel’s Conservative Bloc
  • 1 day How Long Until We Have Working Nuclear Fusion Reactor?
  • 2 days China Thirsty for Canadian Crude
  • 4 hours Threat: Iran warns U.S, Israel to expect a 'devastating' revenge
  • 2 days China Tariff Threatens U.S. LNG Boom
  • 10 hours Saudi A Threatens to Block UN Climate Report
  • 2 days Cruise ship could get a 100'000$ fine for using illegal bunker fuel
  • 2 days UN Report Suggests USD $240 Per Gallon Gasoline Tax to Fight Global Warming
  • 2 days China auto sales sink
  • 8 hours Nothing new in Middle East? Iran Puts On 'Show Of Strength' Military Exercise In Gulf
Alt Text

Oil Experts Divided As Iran Sanctions Loom

The world’s top oil trading…

Alt Text

Why The Saudis Can’t Keep A Lid On Oil Prices

Oil prices continue to rise…

Alt Text

Egypt Feels The Squeeze Of Higher Oil Prices

Egypt has just realized one…

Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Trending Discussions

Support Crumbles As Sellers Resume Control

Crude Oil

Crude oil support fell apart last week, leading to a price collapse. The selling momentum was strong enough to drive the market into a new low for the year. Some traders are calling $40.00 support, but this is merely a psychological level. Based on the building of a bearish fundamental picture, it looks as if this market is headed a lot lower than $40.00. At this time, the price level is not as important as the chart pattern and the price action. And the chart pattern and price action indicate that sellers are in control and buyers are scarce.

Throughout all of February and some of March, hedge and commodity fund investors were giving the market the benefit of the doubt that a rally would take place because of the number of producing wells being shut down by the U.S. oil companies. They were also holding out hope that OPEC would begin to feel pressure to reduce production, but these scenarios never panned out. U.S. oil inventories continued to build and OPEC actually increased production as well as prices for U.S., Asian and European customers.

With production rising, all it took was the seasonal shutdown of refineries for maintenance and the switchover to spring and summer gasoline blends to reduce demand and raise inventories further. In addition, this created storage issues at the key Cushing, Oklahoma storage facility which led to it nearing full capacity. On top of this, contango pricing or the buying of nearby futures contracts and the sale…

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