Tag Archives: Brent Crude

Crude Oil

Crude Oil Futures Analysis- 14Apr2020

Leave a comment

#CrudeOil fell more than 9% today, to close near $20.65 per barrel, as energy investors and traders noticed that even a record production cut by OPEC+ was not enough to restore market balance as crude consumption took a sharply hit from stay-at-home restrictions and closures tied to the coronavirus pandemic.

Major oil-producing countries (Russia, Saudi Arabia, USA, etc) have agreed to cut 9.7 million barrels a day, which is 4 times more than the previous record set in 2008, in response to a nearly 30% drop in global fuel demand.

WTI Crude Oil futures fell below $20 briefly, to take out a large number of stop losses, and bounced back sharply to $20.75l while Brent crude oil fell below $30 per barrel during afternoon trading.

Just imagine, Brent Crude Oil is 50% more expensive than WTI Crude Oil — such a major gap is unimaginable, and its creating acute pressure on US shale oil producers.

Our WTI Crude Price Outlook is a recovery back to $25 by end of April 2020.

Crude Oil

Crude Oil Futures Analysis – 25Sep2019

Leave a comment

Crude Oil Futures have been correcting almost daily since the large spike in prices on 15-16 Sep 2019 after the accident at Saudi Aramco refinery, which has about 5% of global capacity. That price spike was mostly on short covering and with the assurance from Saudi Aramco that their refinery output will be fully restored by end of Sep 2019.

WTI Crude Oil Futures are bullish above $54 per barrel, and they have already formed a strong base at 50-52 level. Brent Crude also has bullish outlook above $60 per barrel.

As shown in the above chart, there are multiple trend lines offering support to prices between 53-55 levels. These are suitable levels for buying for 1 dollar gain per trade.

Our Crude Oil Futures Trading Strategy is to buy at all levels between $50-55 per barrel, for selling between 55-57 levels. These trades are likely to restart from October first week. We will consider 50 as the absolute stop loss for all long positions.