Tag Archives: WTI

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…

Crude Oil Surges, But Talk Of A Bottom Premature At This Stage

Fawad Razaqzada

The price of crude oil has managed to rally significantly in percentage terms since hitting a low sub $28 in mid-week. Since Brent hit a low of $27.10 and WTI $27.50 on Wednesday, the two major oil contracts were some 13-15 per cent better off at the time of this writing on Friday morning. In nominal terms, the gains have been about 4 dollars thus far – although noticeable, $4 merely represents a drop in the ocean compared to how much prices have fallen over the past year or so. This sort of a move is not uncommon in strong bearish trends and suggestions that a bottom has been reached may be a bit premature at this stage as after all the fundamental picture has not improved whatsoever. That being said, the rally back above the $30 handle is clearly a bullish outcome as far as the near-term outlook is concerned. 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…

Volatile Day For Crude And Canadian Dollar

Fawad Razaqzada

Crude oil and crude-related assets like the Canadian dollar have had a volatile session Thursday. Oil prices were initially higher and were on course to finish in the black for the third consecutive session. Sentiment in the oil market was improved on increased geopolitical risks arising from Russia’s military intervention in Syria and worries about supply outages in the US due to the developing Hurricane Joaquin. In addition, risk sentiment had improved 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…

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…