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The energy complex has sold off following a surprise announcement by OPEC that they are considering an increase in production as early as next month. The drastic reduction in Venezuelan oil production did most of the heavy lifting for the oil cartel as Brent crude hit OPEC’s price target of $80 per barrel. While the …
OPEC Signals Rising Production, Energy Complex Falls Read More »
Market Overview Maduro has won another term as president amidst accusations of vote rigging. During Maduro’s tenure, Venezuelan oil production fell roughly 40% to recent lows of 1.5 million. The drop in production has offered sustained support for global crude oil prices and Maduro’s victory looks to maintain the trend. Additionally, President Trump issued a …
Maduro ‘Wins’ Election, Spells Continued Trouble for Venezuelan Crude Read More »
Market Overview In a busy start to the week, Middle Eastern tension has ramped up as Israel has provided the US government with roughly 100,000 documents claiming to show that Iran has lied about its nuclear weapon program. Additionally, Israel appears to have launched a missile strike overnight on targets in Syria that were occupied …
Market Overview WTI futures had a slight extension over the previous weeks rally with prompt month contracts trading as high as $69.56. The fundamental environment remains supportive of oil prices on bullish demand and economic growth, but short-term market conditions warrant a corrective move lower. The rising cost of capital in the US has investors …
Rising Cost of Capital Threatens Bullish Fundamentals Read More »
Market Overview Risk premium that was priced into the energy complex because of tensions with Syria is beginning to sell off. While the coordinated strikes on Syrian chemical weapons facilities by the United States, Great Britain, and France was a clear escalation of intent, selling pressure found its way into the market as traders see …
Sellers Looking for Positions as Global Risk Unwinds Read More »
Market Overview The potential trade war between the US and China dominated price action last week and remains the focus for the coming sessions. Early trading this week has seen a rally in WTI despite the lingering threat. Comments from President Trump early Sunday morning took some of the pressure off commodities as he pointed …
Energy Complex Trends Higher Despite Trade Tensions Read More »
Market Overview Trade war tensions continue to mount as China issues tariffs on US exports worth $3 billion following the issuance of tariffs on Chinese goods in excesses of $50 billion by the US. In prior weeks, the energy complex appeared little phased by further talk of trade wars with WTI posting a significant rally …
Trade War Fears and Equity Performance Weigh Heavily on Crude Read More »
Market Overview Not long after we said the technicals across the energy complex were setting up for bearish momentum, WTI prices broke above key resistance and quickly climbed toward $66. Several geopolitical issues preceded crude’s rally. First and foremost, Saudi Arabia issued comments suggesting the OPEC led supply cut agreement may be extended into 2019. …
WTI Challenges Highs As OPEC Talks 2019 Supply Cut Read More »
Market Overview Intermarket relationships are giving mixed signals as crude and product pricing tries to find direction. US Dollar performance and the trend on Eurodollar yields point to short-term gains across the energy complex while global equities suggest bearish price action going forward. Last week’s Oil Market Report released by the IEA on March 15th …
Technicals Looking Bearish for Crude and Products, Waiting for Fundamental Catalyst Read More »
Market Overview A strong close in US equities and moderate weakness in the US Dollar saw WTI futures bounce from $60.00 to $62.30 during late week trading. However, OPEC jitters over the weekend led to a good deal of profit taking as hedge funds continue to liquidate their net long exposure. The charts remain bearish …
Technicals and Shaky OPEC Compliance Point to Further Losses Read More »
