After a week of
increased uncertainty following the anticorruption crackdown in Saudi Arabia,
the focus is re-shifting toward fundamentals again. A Tuesday sell-off was
triggered by the IEA monthly report where the agency reduced its’ global demand
forecast by around 100k bpd in contrary to the last OPEC Monthly report from a
day earlier. The bears got some additional support in the evening from the
increased oil inventories reported by API. The next day the official government
data confirmed the oil stock accumulation but didn’t cause additional selling
as the main damage was done on Tuesday.
Although the crude jumped up 2.6% on the last trading day of
the week, further rally will need some geopolitical support as the fundamentals
seems to be improving. The US oil production hit new multi month record at 9.65
mil bpd and it seems the crude output is on its way to reach 10 mil bpd in a
few months time. Additional pressure came from Russia with its wavering support
for the extension of the OPEC production curb deal. The cartel has a schedule
meeting on 30th November where the member states should decide whether to
extend the agreement beyond March 2018.
The next important
oil related reports are:
Tuesday – EIA
Monthly Energy Review and API weekly oil stocks and refinery operations
Wednesday – EIA
weekly petroleum status report
For the technical view please check the weekly WTI chart:
Good Luck and remember to watch your risk and be consistent
Mr. Tech Man
DISCLAIMER: This material was created for informational
purposes only and represents the Land of Trading team’s view of the past and
current economic and capital market environment. It is not an investment advice
and should not be viewed that way at all, and the creators of this material
cannot be held liable for any potential losses resulting from trading, where
despite this disclaimer someone would consider this material as an investment
advice. All rights reserved ©2016.
Contact: landoftradingATgmailDOTcom,
Blog: landoftrading.blogspot.com
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