Tuesday 19 April 2016

A new dawn


It’s a new dawn, it’s a new day and the oil market is surfing over a new wave.

The Doha failure pushed crude prices down, but some advantage
was taken due to a worker strike in Kuwait.
The collapse was limited by the sharp decline in production in Kuwait meaning that the production in the Gulf dropped by 60% (1.7 mln barrels per day) - slightly more than the surplus flooded world markets in the first half of the year.

But this will affect prices only in the short term. When exports from Kuwait will be completely renewed, the market will once again focus on the ongoing oversupply, which amounts to about 1-2 million barrels per day.

Technically speaking crude oil is facing major resistance at $40.40.
The self-able commodity presented with strong mambo steps on the ballroom market,
recovering from the nailed low at $37.65.      
Hammerlock position will stay closed within the rhythm as long as the resistance at $40.40 keeps the beat on. If the next step would break the support located at $39.40, we may meet the $38.80-$37.16 target.

No comments:

Post a Comment