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Oil Price Fundamental Daily Forecast – Prices Recover As Irma Slows Down

By:
Colin First
Updated: Sep 12, 2017, 08:14 UTC

Oil prices have been choppy over the last few days since the middle of last week as the global events and fundamentals have been pushing and prodding the

Crude Oil

Oil prices have been choppy over the last few days since the middle of last week as the global events and fundamentals have been pushing and prodding the prices this way and that during this period. On the one hand, the prices have been forced to deal with the waxing and waning of the dollar strength.

The dollar strength has been moving this way and that depending on the Hurricanes and the threats from North Korea apart from the incoming data. The oil prices have been affected by this and also by the fears on the kind of destruction and disruption that would be caused by the hurricanes. As Hurricane Harvey ended and gave some relief to the oil prices, Hurricane Irma came along and this led to a crash in the oil prices on Friday on fears that supply and demand might be affected.

Oil Hourly
Oil Hourly

But the oil prices managed to recover over the last 24 hours as Hurricane Irma did not bring along as much destruction as was expected and this ensured that the supply and the demand would not be affected too much in the short term. Also, we had reports that said that Saudi Arabia would be willing to extend the production cut for longer in order to support the oil prices and this helped the prices to push through the $48 region again.

Looking ahead for today, we expect the oil prices to continue their recovery the dollar strength wanes and the rigs and refineries begin to get back online in the short term. We have been maintaining the medium term uptrend in the oil prices for some time now and we believe that the $50 region is likely to come under pressure in the short term as the oil prices recover.

About the Author

Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.

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