Oil Slips Below $ 60, As Cold Weather Disrupts Production
Crude Oil retreats below $60, but buyers remain in charge
Skerdian Meta•Tuesday, February 16, 2021•1 min read
WTI crude oil is back to $59.55 after nearly touching $61 yesterday. Although, the refinery demand is skewing the picture. Some of the retracement is about the cold weather in the US. That led to a number of refinery shutdowns, which leaves fewer buyers for oil.
At the same time, some production is also being shut-in by the cold, so there’s some balance there, it’s just tough to find it. There’s also a skew in demand with extremely high heating demand, boosting distillates and natural gas but very low driving demand, sapping gasoline.
All in, that’s leaves for a but of uncertainty in the market and it looks like some of the momentum traders have bowed out. It also begs the question, if WTI only hit $ 60 when the US was on holiday, did it really hit $ 60 at all? But, the decline seems weak and buyers are coming back again, so the price will climb above $ 60 soon I assume.
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Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst.
Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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