• 3 minutes This Battery Uses Up CO2 to Create Energy
  • 5 minutes Shale Oil Fiasco
  • 9 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 12 minutes Historian Slams Greta. I Don't See Her in Beijing or Delhi.
  • 3 mins Which type of Hegemony will China follow
  • 17 hours Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 5 mins China gets caught?
  • 7 hours Demand for Diesel vs. Oil
  • 20 hours Yesterday POLEXIT started (Poles do not want to leave EU, but Poland made the decisive step towards becoming dictatorship, in breach of accession treaty)
  • 3 hours Us Shale: Moving the US shale revolution forward
  • 2 days Here is Why People Lose Money Trading Natural Gas
  • 21 hours Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 1 day Tesla Will ‘Disappear’ Or ‘Lose 80%’ Of Its Value
  • 2 days Let’s take a Historical walk around the Rig
  • 2 days US Shale: Technology
  • 2 days Governments that wasted massive windfalls
Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Oil Market Forecast & Review 20th December 2013

Oil Market Forecast & Review 20th December 2013

February crude oil futures fluctuated between gains and losses this week as investors reacted to the latest economic reports and the U.S. Federal Reserve’s decision to begin reducing its monthly monetary stimulus.

Despite the Fed’s decision to taper and the stronger U.S. Dollar, crude oil prices continued to climb as investors expressed optimism about the U.S. economic recovery. The strengthening economy should lead to stronger demand which in turn would help take care of the high inventory figures.

Crude oil has risen 10 of the previous 14 trading sessions which puts it in the category of strong and decisive. The market even rallied after the Fed announced its decision to trim $10 billion of the $85 billion in monthly monetary stimulus. Many traders were hesitating about playing the long side of the market because an early tapering by the Fed was expected to trigger a surge in the U.S. Dollar which was expected to lead to a drop in foreign demand. Crude traders looked the other way, however, and bought the market as a sign that they believe the stronger economy will increase demand enough to offset the expected drop in foreign demand.

Also helping to underpin the market was the third consecutive weekly drop in supply according to the Energy Information Administration. The EIA reported a decline of 2.9 million barrels last week. Investors were pricing in a 4.0 million barrel increase. Crude oil stocks, however, remain at their highest level…




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