Category Archives: WTI

WTI Is Bullish But Watch For Crude Oil Inventories Data

Nenad Kerkez

Earlier this week, Oil prices rose as U.S. crude stockpiles showed a drawdown larger-than-expected late last week. In addition, Britain’s largest pipeline from its oil and gas fields in the North Sea had an unexpected shutdown for several weeks due to cracks appearing. This pipeline carries about 450,000 barrels per day (bpd) of Forties crude, and causing supply constraints as the pipeline is the largest out of the five crude oil streams that underpin the Brent benchmark. more…

Crude Oil Rally Gaining Momentum

Fawad Razaqzada

Crude oil prices have been repeatedly hitting fresh highs for the year in recent days. Just a month or so ago, they were dropping to fresh multi-year lows almost on a daily basis. The sudden turnaround has been triggered by a number of factors. Like every other rally, it all started as the sellers started to exit their positions. Bullish speculators then slowly started to pile in and more and more sellers withdrew as key resistance levels broke. Sentiment turned on investor realisation that the significantly lower oil prices boosted demand, most notably in China, and at the same time caused severe difficulties for oil producers, to such an extent that more…

Crude Attempting To Break Higher As Impact Of Bearish Macro Drivers Fade

Fawad Razaqzada

Crude oil prices have stormed back this week. As we go to press, Brent was trading at a good $36 per barrel while WTI was above $33.50. Both contracts have been supported first and foremost by a general improvement in risk sentiment, with equities also bouncing back buoyantly in recent days. More specific to oil, signs of a noticeable crude output decline in the US and on-going talks about an oil production freeze more…

WTI Extends Decline As Crude Stocks Increase Sharply

Fawad Razaqzada

Undoubtedly, a growing number of people – myself included – are no longer expecting the current oil market imbalance to correct itself as fast as it had appeared to be the case up until a week ago. Several things have changed in recent days, not least for example the International Energy Agency’s (IEA) latest outlook with the oil forecaster no longer envisaging strong demand growth in 2016. more…

Crude Oil Prices Gushing Higher

Fawad Razaqzada

WTI crude oil prices surged higher at the start of the week before falling slightly on Wednesday on the back the latest weekly EIA crude oil stocks data which showed a surprise build of 3.1 million barrels for the week ending October 2. But speculators have been quick to dismiss that small but noticeable rise on seasonal factors, as after all the end of the summer driving season more…

WTI oil drops to 6.5-year low… but where to now?

Fawad Razaqzada

After falling for nine consecutive weeks, the price of WTI crude hit oil its lowest level since March 2009 on Thursday. Though US oil has bounced off the low ($41.35), it remains near this year’s earlier base of about $42 and thus on course to potentially fall to $40 a barrel next. That being said though, the correction potential is now high as ‘bargain hunters’ try to buy “cheap” oil and the sellers take profit ahead of the weekend. If seen, this would probably only lead to a temporary bounce. After all, the end of the summer driving season is approaching and refineries will have to more…