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 made a $13.97 movement up 1/2 way to the .270 at $78.04 of the fib. The rsi and the MacD is below the sell zone indicating further up movement to come. It appears there is a divergence between the rsi and the MacD with the candles as indicated by the green circles. This pair should continue up to the .270 at $78.04 giving $3.07 and up to the 1.618 at $ 81.04 giving $5.92
Hourly shows this pair has weaved it’s way in a stair formation to above the .270 at $74.62 of the primary fib and to just below the 1/2 way of the secondary fib. The rsi and MacD are below the sell zone sitting in the middle. While it might retrace down a little this should continue up to the .270 at $76.53 of the primary fib which will give $1.24. If it continues to the 1.618 at $76.85 of the secondary fib this will give $1.54.
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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