Above is Monthly chart of WTI CRUDE
3 Consecutive close above $ 55.73+ weekly close +++Monthly close if happens
Rally (Nonstop )upto $62.58—————-64.86++ will happen.
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The market won’t like that big build in gasoline but the oil and distillate numbers are probably a bit better than what the market was expecting after API.
API numbers released yesterday showed:
After two weeks of large crude and gasoline builds, API reported bigger than expected builds in crude, gasoline, and distillates (and smaller than expected draw in Cushing) which sent WTI prices tumbing, crossing back below the $53 Maginot Line once again.
The 3rd weekly build in crude in a row and 4th large gasoline build in a row along with a smaller than expected draw at Cushing…
Saudi energy minister Khalid al-Falih said earlier today after the first meeting:
“I am satisfied, I am optimistic and, as I said, the markets are on their way to rebalance and it’s happening,”
adding that compliance with the agreement, which calls for cuts to begin this month, had been “fantastic“.
“Usually non-OPEC would raise their production to compensate for voluntary cuts by OPEC. Now, we are seeing voluntary cuts by both sides,”
Some 1.5 million bpd in crude production had already been taken out of the market last week he said.
“The other 300,000 bpd, for all I know, is still happening,” saying that he hoped for 100% compliance in February.
The next meeting was scheduled for after 17 March they also announced today.
More from Reuters here
I’m heading back out now. Enjoy the rest your week-end one and all. Thanks again, as always, for your fantastic support and input.
I wish you good trading this coming week and hopefully we can help make/save you a few pips along the way.
El-Falih Oil rebalancing on its way he says
Producers have already cut output by 1.5 mbpd, according to Saudi minister of energy Khalid Al-Falih. He said his country along with Kuwait and Algeria have already taken more off the market than required.
Meanwhile, Russian oil minister Novak said progress in cutting Russian production was “ahead of schedule”.
The monitoring committee of OPEC are meeting today and tomorrow. The topic won’t yet be compliance because we’re not yet at the end of the first month of the agreement. Instead, they will talk about how to monitor and measure.
The total amount of oil expected to be removed from the market for six months is 1.8 mbpd. Skeptics argue that much of the ‘cut’ is optics and that countries were producing beyond capacity in the lead-up to the agreement or had scheduled natural/seasonal depletions.
Influential Algerian oil minister Boutarfa repeated a comment from his Saudi counterpart, who said last week that quotas beyond June may not be necessary.
“If we really comply by 80-90%, it may not be necessary to continue,” he said.
WTI crude finished $1.10 higher on Friday to $53.22 but failed in a test of downtrend resistance after a large jump in oil drilling rigs.