Karachi, February 13, 2018 (PPI-OT): Crude Oil
The WTI Crude Oil market has rallied significantly during the day on Monday but is starting to run into trouble near the $61 level, an area that is congruent with an uptrend line that has been important. The fact that we broke down below that uptrend line late last week was a very negative sign, and it now looks as if we are trying to roll over from that level. If we do, I think we will continue the overall downtrend. Keep in mind that oversupply of crude oil is going to continue to be an issue as Americans are becoming very aggressive. Brent markets rallied as well, but struggled near the $64.50 level, and obviously has a certain amount of psychological resistance at the $65 level. At this point, I think that we are starting to roll over a bit so it’s likely that the downward pressure should continue. United States has become the world’s largest producer of oil.
Prices for U.S benchmark crude saw a slight gain yesterday
March crude added 9 cents, or nearly 0.2%, to settle at $59.29 a barrel
Crude oil prices lost nearly 10 percent in the last trading week
Oil saw a steep decline last week after data showed an increase in U.S. oil production to a record weekly level
OPEC said in yesterday’s session it expected world oil demand to climb by 1.59 million barrels per day this year
Oil prices rose today, lifted by a rebound in global stock markets that followed sharp falls last week, as well as by a weaker dollar which potentially supports more fuel consumption.
U.S. West Texas Intermediate (WTI) crude futures were at $59.60 a barrel. That was up 31 cents, or 0.5 percent, from their last settlement. Brent crude futures were at $62.97 per barrel, up 38 cents, or 0.6 percent, from the previous close.
“Oil markets attempted a half-hearted recovery overnight on little more than an equity market correlated bounce, and indeed the weaker U.S. dollar added to the momentum,” said Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore.
The dollar’s index against a basket of six major currencies fell 0.3 percent to 89.923 today. A weaker dollar makes fuel imports cheaper for countries that use other currencies domestically, potentially spurring demand.
Meanwhile, stock markets today pulled away from two-month lows from the previous week, when shares were roiled by some of the sharpest falls on record, shaking confidence across markets.
With markets seemingly returning to calmer waters, oil traders said attention was turning to inventory levels to gauge crude supply levels. The change in inventories this week will be crucial for determining whether further declines in the oil price are on the cards.
The private American Petroleum Institute (API) is due to publish crude inventory estimates on Tuesday, while the government U.S. Energy Information Administration (EIA) is set to release its fuel storage and crude production data on Wednesday.