Category Archives: Crude Oil

Crude: OPEC Unlikely To Cut Production Quota

Fawad Razaqzada

The official OPEC meeting is underway in Vienna and crude oil prices are trading in tight ranges as the market awaits a decision. A division within the cartel is clearly visible with Saudi Arabia and Gulf countries wanting to maintain production quota unchanged, while the rest, most notably Venezuela, favouring a reduction in order to shore up prices to help support their struggling economies. Saudi would have considered a cut if certain non-OPEC members like Russia also agreed to reduce their crude oil output. This is a bizarre request and unlikely to be agreed upon. Iran’s oil minister wants everyone to cut their production apart from his country. With so many members in disagreement, an eventual decision will undoubtedly not be unanimous. more…

Crude, Commodities Stabilise; Outlook Remains Bleak

Fawad Razaqzada

Commodity prices have been more stable since Wednesday. Gold is now up for the third consecutive day, copper has halted its decline and oil is trading sideways. While gold has been underpinned by a slightly weaker dollar due to growing expectations of a so-called dovish rate hike from the Fed, copper is getting a boost in part from zinc, which has rallied sharply after ten Chinese smelters said more…

Broken Channel Indicates More Bearish Movement For OIL

Gregor Horvat

Crude oil made only three waves up in September that we labeled it as a zigzag in wave 4. Notice that that wave 4 moved up into the area of a former wave four near 50.80 from where price turned down very sharply, through the lower support line of a corrective channel. This breakout confirms continuation lower, so we suspect that price is headed back to the lows of 2015. We see wave 5) of (C) that can be targeting even $30 in months ahead. more…

Crude Holding Up Well Despite More Bearish News

Fawad Razaqzada

Judging by Thursday’s and most recent price action, crude oil is continuing to shrug off bearish news. This suggests that most of the negative news may now be priced in, which in turn implies that prices may have hit a bottom. But it is still early days and there are no concrete signals to confirm this thesis. Therefore, crude oil speculators should proceed with extra caution now and trade what they see rather than what they would like to see on their charts. more…

WTI: (W)Ound (T)Ight (I)Nside A Triangle

Matt Weller

Wednesday was an interesting day for global markets, highlighted by a big intraday reversal on Wall Street. After gapping almost 1% higher to start the day, US stocks faded into negative territory as of writing as traders expressed their disappointment with Apple’s big media event. Not surprisingly, the waning buying pressure in equities has spilled over into other markets, with bond yields falling, the US dollar rallying, and oil reversing Tuesday’s gains. more…

Crude Oil Trades Within Impulsive Downtrend

Gregor Horvat

On Crude oil daily chart we have seen a nice retracement from February low to 63 level, but with three waves which is a structure of a corrective price action. We labeled it as completed wave 4) so we believe that price is falling now in wave 5) that can be $33 by the end of the year. Currently we see price in sub wave 3 of 5) that can be looking for some support around $40. more…