All articles tagged with #wti crude oil
Natural gas rebounds after the EIA report showing a -71 Bcf draw, with prices testing the $3.10 area and eyeing resistance around $3.25–$3.30; WTI crude slips below $60 as Iran supply-disruption fears ease following Trump’s comments, with a path toward $55.50–$56.00 if it continues lower; Brent crude also eases toward $64 as Iran risk fades, with a downside target near $62.54 if losses extend.
The drop in oil prices this week can be attributed to several factors, including technical selling after the $80 level was broken, a switch from backwardation to contango in the oil market triggering bearish curve selling, seasonally weak crude demand, low net long speculative positioning, increasing OPEC exports, unexpected rise in global crude inventories, Iran's continued production, concerns over demand uncertainty, and unclear signals from China. While there may be short-term upside potential, mounting concerns of slowing demand could limit a significant relief rally in the coming weeks. However, there is a compelling reason to buy the dip in oil, with expectations of Saudi/OPEC tightening measures in Q1 and longer production curbs.
Crude oil markets have shown a gap at the beginning of the week but have since filled it, indicating a potential recovery. The West Texas Intermediate (WTI) Crude Oil market is finding support on dips, with the 200-Day EMA and 50-Day EMA acting as key support levels. If the market breaks below the 50-Day EMA, a more significant pullback to the $75 level could occur. Meanwhile, Brent markets also experienced a gap to the upside but pulled back. OPEC production cuts are expected to continue impacting supply, and if the $85 level is breached, further upside momentum could be seen, potentially reaching the $87.50 and $90 levels. However, a break below the 50-Week EMA could lead to a drop to the $80 level. Overall, the market is showing signs of a shift from a lack of demand to a lack of supply, with potential for further upward movement in the future.