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Basic forecasts for crude oil: Bullish
Crude Oil Discussion Points
Oil prices may continue to catch an offer because the Organization of Petroleum Exporting Countries (OPEC) remain committed to rebalancing the energy market and recent price measures maintain high-level targets on the radar for crude, which hit the December high ($ 54.55).
Looking for a technical point of view on crude oil? Check Weekly Technical Forecast for Crude Oil.
New comments from Minister of Energy of Saudi Arabia Khalid Al-Falih suggest that OPEC and its allies will continue to cut production even as the United States imposes sanctions on Petróleos de Venezuela, S.A. (PDV S.A.) as the region promise to reduce production "well below the voluntary ceiling" over the proposed six-month period.
Oil price defense efforts may continue to bear fruit as information from the US Energy Information Administration (EIA) shows that weekly field production remains stable at 11,900K during the week ending 25 January, and that the limited threat of supply outside of OPEC should be maintained. raw afloat especially as Russian Minister of Energy, Alexander Novak¸ approves a price range of 55-65 billion dollars.
That said, OPEC and its allies could continue to press for oil prices to rise before the next meeting in April, and the current environment could fuel the rebound from the December low ($ 42.36). ). as a reverse head and shoulders takes shape. Sign up and join the DailyFX badyst David Song LIVE for an opportunity to discuss possible business configurations!
Daily chart CL1
The crude could organize a larger recovery over the next few days December high ($ 54.55)but requires a closure above the USD 55.10 (61.8% expansion) to USD 55.60 (61.8% retracement) open up $ 57.40 (61.8% retracement).
The next region of interest is around $ 59.00 (61.8% retracement) at $ 59.70 (50% retracement), followed by the Fibonacci overlap of about $ 62.70 (61.8% retracement) to $ 63.70 (38.2% retracement). Will closely monitor the Relative Strength Index (RSI) as it approaches the overbought territory, with a break above 70 increasing the risk of higher crude oil prices.
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— Written by David Song, Currency Analyst
Follow me on Twitter @DavidJSong.
Other weekly basic forecasts:
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