Replies to post #3838 on Oil & Gas - Energy - Commodities - Resources (OILBRENT)

[benfrankledger]

$OIL $XLE In the U.S., WTI crude climbed to $63.80/bbl after trading as high as $64.77, as domestic stockpiles posted their eighth straight week of declines, the longest stretch during winter in a decade.

Noting that U.S. crude inventories are at their lowest level since August 2015, PVM Oil Associates analyst Tamas Varga says “OPEC is edging ever closer to its desired target of reducing OECD industrial stocks to the five-year average.”

Gary Ross, head of oil at S&P Global Platts Analytics, who forecast $70 Brent oil last year, sees potential for the market to keep rising as he thinks many are still overestimating the size of remaining inventories.

Eugen Weinberg, head of commodities research at Commerzbank. thinks the oil market is overheating: “$70 is too much. It is not completely unexpected, given the price momentum. But there will be a reaction in U.S. shale, and OPEC’s strategy will backfire massively.”

[DiscoverGold]

Viewing Strength in Oil as Potential Shorting Opportunity
By: MPTrader | March 2, 2018

Crude Oil-- If my larger pattern work proves reasonably accurate, then the entire upmove from the Feb. 2016 low at $26.05 to the Jan. 2018 high at $66.66 completed a major recovery rally phase, ahead of a period of weakness that will have the potential to press Oil into the mid-50's for starters, then to test psychological support at 50, in route to a revisit of much lower levels thereafter.

This scenario argues either that a geopolitical event won't occur, or won't matter enough to alter the lopsided supply fundamentals that are reemerging in the Oil market.

With that as a backdrop, strength should be viewed as a potential shorting opportunity. My two optimal recovery rally targets are in the vicinity of $61.70-$62.00, and again at $62.80-$63.00 if it gets there, in anticipation of another sharp decline that takes out support at $60.00... MJP





https://www.mptrader.com/middaymarkets/

• DiscoverGold

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