Oil falls nearly 1% on oversupply concerns, U.S. jobless data.
Check out my freshly updated US Oil charts.
WEST TEXAS OIL
Daily shows this pair has come down $10.15 to 58.94, sitting just above the .236 at 58.40. The rsi has just left the sell zone and is headed down to the buy zone. This pair should reach the .382 at 56.11 giving $3.10, If it continues to the .618 at 52.39, this would give $6.57.
Hourly shows this pair has made a significant moves down of $4.04, and crossed a down trend line then retraced up by $1.45. The rsi is just under the sell zone indicating there is a little further movement up before it starts to head down to the buy zone. Confirmation of this pair moving down is needed before placing a trade in this time zone.
USOil in the news
“While oil-market fundamentals may have started to normalise, much of the progress comes from the supply side, while demand continues to disappoint,” said Emily Ashford, energy analyst at Standard Chartered Bank, according to CNBC.
The EIA estimates current US oil demand to have risen to more than 18 million bbl/d from less than 14 million bbl/d in April compared with an average of 20.01 million bbl/d last January, according to Oilprice.
Oil futures steadied on Monday as rising U.S.-China tensions weighed on sentiment, but prices drew support from reports that OPEC and Russia were close to a deal extending output cuts.
“The possibility of heightened tensions does pose a risk for the recent rally in oil prices,” said Harry Tchilinguirian, head of commodity research at BNP Paribas.CNBC
“If talks do end with an extension of the agreement without reducing cut levels, the market is likely to see some renewed buying interest,” said Fraser. “However, demand numbers should remain a source of concern moving forward, as COVID-19 remains a challenge, even as new geopolitical headwinds for crude and the broader economy emerge.”
“The current proposal is to extend the production by at least one month and a maximum of three months. If agreed, the move can further strengthen the [WTI, the U.S. benchmark] crude oil price and Brent oil prices,” wrote Naeem Aslam, chief market analyst at AvaTrade in a Monday research note.MarketWatch
In a sign of changing times, a U.S. oil refining company is converting one of its plants into a producer of clean fuel.
The plant will stop consuming crude oil at the end of July this year, and 200 workers will be laid off, according to HollyFrontier.Old U.S. Oil Refinery to Pursue New Green Life After Crude Crash according to business.financialpost.com
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