Crude Oil Prices Show Demand, Saudis Ready to Tweak Output
Oil fundamentals have improved, as the global economy makes a turnaround slowly and the IMF is predicting a “soft landing” as well now. In the first week of February we saw a $7 dive, but it made a swift reversal last week and claimed back most of the losses, while today we saw another bounce, which indicates that buyers are in charge.
Oil Keeps Bouncing After Every Dip
Crude Oil keeps finding bids after each downturn, and we’re now in a bullish period. The lows are getting higher, with US WTI crude only dipping below $70 once in early January. This indicates that buyers are coming in higher every time and the therefore the trend is bullish. So, we might see a break of January’s high soon.
At the start of last week Oil was down trading around $71.50 but the 50 SMA (yellow) held as supporton the daily chart. The price created a doji candlestick, indicating a positive reversal. The reversal came and the price surged above $77 last week. However, buyers ran into the 200 SMA (purple) which stopped the bullish momentum on Friday, however it was the end of the week and markets were closing for the weekend.
Today we saw a dip lower initially, but buyers csame right back, after comments by the Energy Minister of Saudi Arabia, who said that they’re ready to tweak the policy, which is a new word politicianms and central bankers are using now, meaning tighten the market.
- Ready to tweak oil output at any time depending on necessity
- Oil demand consistently bigger than some projections
- Our job is to be attentive to oil demand projections, not to be comfortable with it
- “Not a fortune teller” when it comes to predicting future oil demand
- But OPEC numbers have been consistently accurate while others backpedal
US WTI Crude Oil
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