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.
WEST TEXAS OIL
Monthly shows this pair is retracing back up after a large movement down climbing back towards a down trend line. The rsi has left the buy zone and should have this pair moving to the .786 at 52.18 and towards the down trend line. This would give $11.90.
Daily shows this pair zig zagged it’s way to the up trend line and crossed it. It seems to be in a range for now between 41.98 and 35.84. The rsi is in the buy zone and should be making a move up soon. It should reach the .270 at 44.74 giving $4.12.
Hourly shows this pair made a substantial move up of $1.64 and has retraced down .59. The rsi is in the buy zone and this pair is ready to move back up crossing back against 2 down trends. It should reach the .270 at 41.01 and will give .22. If it goes to the 1.618 this will give .85.
USOil in the news
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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