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, touching the down trend line and then making a further down move past the .270 at 6.16. It has retraced back and with the rsi just in the sell zone this pair should move down once it is ready to move. This pair will give $37.41 if it goes to the .270 at 6.16.
Daily shows this pair has been in consolidation for some time and is now sitting below the .270 at 44.92. The rsi is in the sell zone, however is pointed up indicating further up movement to come from this pair and it should reach the 2.70 at 44.92.
Hourly shows this pair followed an up trend line past the .236, retraced down past the .382 at 42.68 and is now in the middle between the .236 and the .382. The rsi is in the buy zone but is pointed down indicating further down movement to come. this pair should reach the .382 at 42.68 giving .16 pips and if it should reach the .618 at 42.28, this would give 57 pips.
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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