Crude attempted to rally during the European trading session, rising from $41.51 lows, to a peak of $42.20 into the N.Y. open. Prices then retreated and
Crude attempted to rally during the European trading session, rising from $41.51 lows, to a peak of $42.20 into the N.Y. open. Prices then retreated and flushed to fresh lows for the month. The IEA reported earlier, that global crude stockpiles stand at 3 billionbarrels, a record, which will likely see prices depressed further in the coming months, even as demand continues to slowly climb.
The unbalanced supply/demand equations is expected to remain in surplus through 2016. The market now eyes the key 37.75 August lows. Resistance is seen near the breakdown level which was the October lows near 42.59. Additional resistance on crude oil prices is seen near the 10-day moving average at 44.33. Momentum remains negative with the MACD (moving average convergence divergence) index, which is a momentum indicator, printing in the red with a downward sloping trajectory which points to lower prices for crude oil.
David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.