• 3 minutes Electric cars may make driving too expensive for middle classes, warns Vauxhall chief
  • 6 minutes Natural gas mobility for heavy duty trucks
  • 12 minutes Colonial pipeline hack
  • 1 min U.S. Presidential Elections Status - Electoral Votes
  • 3 hours Texas Power Outage Danger Until June 18th. Texans told to conserve energy!
  • 7 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 day Succession Planning in Human Resources for Vaccinated Individuals in the Oil & Gas Industry
  • 2 days Federal Judge Says Biden Probably Wrong for Halting Drilling on Federal Land
Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Oil Market Forecast & Review 17th May 2013

After falling from $97.38 on May 6 to $92.40 on May 15, July crude oil rebounded on May 16 to regain almost 50% of its recent break. This turnaround was expected, but most traders were looking for a test of the retracement zone at $91.77 to $90.45 before the rebound began.

Despite showing strength on the daily chart, the market is still having trouble with a pair of main tops at $98.22 and $99.77 as well as a downtrending resistance line at $97.71. Until these resistance areas are penetrated with conviction, expectations are for the market to remain in a sideways-to-lower trade.

Based on the short-term range of $86.16 to $97.38, the main downside target is a retracement zone at $91.77 to $90.45.

Fundamentally, the price of crude oil fell this week after disappointing economic growth figures in the Euro Zone. This weakness led to speculator selling of the Euro in anticipation of further stimulus action by the European Central Bank. The weakness in the Euro triggered a surge in the U.S. Dollar. Because crude oil is priced in dollars, speculators sold crude oil in anticipation of weaker demand.

On May 16, the U.S. Dollar weakened after reports showed a drop in housing starts and a weaker-than-expected weekly jobless claims report. The drop in the Greenback helped trigger a surge in crude oil prices. Traders approached the long side with caution, however, since they weren’t sure that this sluggish economic news represented a trend in the…




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News