Oil falls nearly 1% on oversupply concerns, U.S. jobless data.
Check out my freshly updated US Oil charts.
WEST TEXAS OIL
Monthly shows this pair has retraced down after a large up movement. The rsi is below the sell zone indicating further up movement to come.
Daily shows this pair zig zagged it’s way to the up trend line and crossed it. It had a large movement down, bounced off the .236 at 36.87 and appears to be headed back towards it. The rsi is just under the sell zone and does not appear to be ready to head down to the buy zone yet. Confirmation of this pair heading down is needed before placing a sell trade in this time frame.
Hourly shows this pair has been chopping it’s way between the .618 at 40.80 and the up trend line. The rsi is in the middle but appears to be headed down to the buy zone. If it comes to the bottom of the range at 39.28 this will give 1.29
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
US Oil summarized
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