Global prices gain on talk of extension to OPEC+ output cuts while USOil prices end lower on U.S.-China tensions.
Check out my freshly updated US Oil charts.
Monthly shows a steady progression following a down trend line. The last large down movement yielded $66.37 and bounced up $16.79 to 35.57. With the rsi strongly in the buy zone and ready to move up, this pair should go to at least the .786 at 47.36 which should give $11.99.
Daily shows this pair steadily climbed up $35.98 last week, crossing two down trend lines, and is sitting in between 32.70 and 38.86.The rsi has dipped below the sell zone and looks to be ready to move up again. If it reaches the 1.618 at 38.86 which will give another $3.51.
Hourly shows this pair has come out of consolidation and made a good move up of $1.47 following an up trend line. The rsi is just below the sell zone and appears it still has some up movement to go yet. If it should reach the .270 at 36.65 this would give another $1.11.
USOil in the news
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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