Crude Oil Fluctuations worry Market
Crude oil prices were in for a savage ride in Friday’s session. The WTI benchmark escalate after the US published new sanctions on Iran having taken issue with the latter country’s ballistic missile tests. The move failed to follow through however. Prices swiftly retreated ahead of the weekly Baker Hughes rig count report. Iran’s recent tough stance, coupled with Trump’s, could continue problems. If battle of words becomes physical belligerence, prices would rise astronomically.
OPEC Actions still Extremely influential on Oil Prices
Investors’ caution was taken. Figures showed the number of active oil extraction points rose to the highest since October 2015. This seems to highlight the limited scope for OPEC’s coordinated output cut scheme. It’d been a major catalyst for recent price gains – to remain supportive as swing supply from North America comes on steam.
CRUDE TECHNICAL ANALYSIS – Crude oil prices continue to read water in a familiar range. Also, a daily close below resistance at 53.86 opens the door for a test of the 55.21-65 area (January 3 high, 38.2% Fibexpansion). Alternatively, a reversal below support at 52.44 targets a rising trend line capping losses since early December, now at 51.57.