The oil market started this trading week recording a new low at 19.29 US$, a level last seen 18 years ago, with a shadowed and gloomy projection of the global oil demand falling by more than 20 Mb/d, the yesterday’s rebound in the oil price could be only temporary relief.
Technical reading prevails clear bearish bias, oil market tilted towards the upside yesterday to later closing with a firm rejection and seller pressure right at the support zone in red. Only this week, the price was able to recover some lost ground, almost 42%, fighting not only with the support level but additional finding rejection from the 18 EMA.
Starting the week, the headlines that capture the spotlight in the energy market were regarding Trump’s talks with Putin. President Trump spoke with Russian President Vladimir Putin on Monday, and they agreed to have their top energy officials to discuss the sliding oil demand. Trump is clearly showing concern about the price war and direct impact that is already causing in the US oil rigs.
Later on, Wednesday report with the surge in the US stockpile inventories by 13.8 million vs. 3.5 million forecasted did not cause the expected selloff as expected; instead, price closed in green supporting the theory of a broken global oil market. Storage facilities are filling up, according to Bloomberg. At the current rates, storage could overflow in just a few months. The physical oil market has seized up.
The risk sentiment in the oil market is currently that shallow that even a tweet from President Trump about his conversation with Saudis and Russians yesterday moved the market in one day by 28% up to later drop and close with a 17%, closing in green but signaling a strong seller pressure, again technical correction as the bearish bias remain to hover the energy sector. With no confirmation yet on agreements after the talks, the market will close this week with the skepticism in place.
Technical reading prevails clear bearish bias, oil market tilted towards the upside yesterday to later closing with a firm rejection and seller pressure right at the support zone in red. Only this week, the price was able to recover some lost ground, almost 42%, fighting not only with the support level but additional finding rejection from the 18 EMA.
Starting the week, the headlines that capture the spotlight in the energy market were regarding Trump’s talks with Putin. President Trump spoke with Russian President Vladimir Putin on Monday, and they agreed to have their top energy officials to discuss the sliding oil demand. Trump is clearly showing concern about the price war and direct impact that is already causing in the US oil rigs.
Later on, Wednesday report with the surge in the US stockpile inventories by 13.8 million vs. 3.5 million forecasted did not cause the expected selloff as expected; instead, price closed in green supporting the theory of a broken global oil market. Storage facilities are filling up, according to Bloomberg. At the current rates, storage could overflow in just a few months. The physical oil market has seized up.
The risk sentiment in the oil market is currently that shallow that even a tweet from President Trump about his conversation with Saudis and Russians yesterday moved the market in one day by 28% up to later drop and close with a 17%, closing in green but signaling a strong seller pressure, again technical correction as the bearish bias remain to hover the energy sector. With no confirmation yet on agreements after the talks, the market will close this week with the skepticism in place.
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FEEL FREE TO CHECK MY SOCIAL NETWORKS FOR MORE MARKET INFORMATION 🇺🇸 🇪🇸
INSTAGRAM:
instagram.com/og.fxtrader
FREE TELEGRAM:
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TWITTER
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FACEBOOK
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.