Crude Oil Price Forecast February 20, 2018, Technical Analysis

Chelsea West
February 21, 2018

Overall, however, the oil markets remain well supported by the limited supply by the Organization of Petroleum Exporting Countries (OPEC), the measures being taken early previous year to reduce stockpiling and rebuild prices. The price for Brent was down 0.05 percent as of 9:15 a.m. EST to $64.30 per barrel.

However, "short term crude demand aspects and other fundamental indicators [are] still rather bearish-looking", analysts at consultancy JBC Energy wrote in a daily note Monday.

The exuberance overshadowed steady and strong gains in USA crude oil production, which has since helped drive the price of oil toward the $60 range. West Texas Intermediate, the US benchmark for the price of oil, was down 0.39 percent to $61.10 per barrel.

Oil is struggling to regain the highs of January after a sell-off in global equities seeped into crude markets earlier this month.

The United Arab Emirates energy minister said on late Thursday that oil producers led by Saudi Arabia and Russian Federation aimed to draft an agreement on a long-term alliance by the year end, according to CNBC.

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"We should expect the WTI whipsaw to continue as debate rages between United States shale and OPEC, but we're starting to carve out near-term ranges, as longer-term oil bulls remain in dip buying mode, with shale oil hedger looking to sell upticks", he said. It said that non-Opec production is to increase by 1.7 million barrels per day this year, with U.S. production contributing 1.35 million barrels of this.

Saudi Arabia has been lobbying to keep prices high by instigating a production cut for both OPEC and non-OPEC partner countries.

In the commodity markets, the gold depreciated for third consecutive session after the U.S. dollar recovered from its three-year low last week. Slower domestic demand, along with growth in natural gas, oil, and oil product production will drive the transformation, the EIA said.

Gold prices rose further last Thursday, supported by a weaker dollar as investors bought the yellow metal as a hedge against inflation after a faster-than-expected rise in USA consumer prices last month. Europe's main indexes were fairly stable on Tuesday but Asian markets closed broadly lower, with the Nikkei 225 closing down 1 percent, South Korea's Kospi falling 1.13 percent and the Shanghai Composite slumping 0.46 percent.

Other reports by TheSundaySentinel

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