For oil traders, speculators and indeed corporate buyers, the price action on the daily oil chart reflects a confused picture for crude oil, and to mix metaphors for a moment, the waters have been muddied and remain confused and uncertain.
In the past investors were limited in choices between paper assets like stocks , bonds and trust deeds, and physical assets. Physical assets were all forms of commodities (DBC, quote) , real estate, precious metals, agricultural, energies etc , along of course their labor.
Whilst fundamentals and weather play a huge role in driving the price action for natural gas, the technical picture is now increasingly taking center stage as we move into the warmer months of the year and the commodity responds accordingly.
It’s been a month of congestion and consolidation for crude oil prices, with the commodity driven by a variety of forces, but as we approach the start of October, the market now appears to be building some momentum in preparation of an imminent breakout. However, much will depend on the deep areas of price resistance now directly ahead.
Brent crude oil (BNO, quote) prices climbed as problems in Libya continued and US crude inventory data showed that the nation’s stocks fell last week.
Brent crude oil (BNO, quote) slipped below $109 to $108.58 at 5:50 GMT on Tuesday morning as investors put their faith in a meeting set to take place on Thursday between the US, the EU, Russia (RSX, quote) and Ukraine.
WTI Crude Oil (USO, quote) is trending higher in early trading by $0.88 or 0.87% at $101.16 ahead of the non-Farm Payroll Report. It’s worth noting that crude oil typically remains flat ahead of the report.
Turmoil in Emerging Markets hit investor confidence in January and, after a stellar February, the crisis in the Ukraine could lead to profit taking this month. Indeed, volatility spiked to a similar level and the S&P came off its all-time-high on Friday as fears started to set in.
As we begin the week on increase turmoil between the Ukraine and Russia(RSX, quote) energy traders are seeing the highest crude oil prices since September of last year as producers are fear political driven supply disruption.
Crude oil futures started the week in bullish tone, with the April WTI contract closing higher at $94.81 per barrel, up almost $1.50 in the session, and ending with a wide spread up candle, but with a small wick to the upper body. Nevertheless, despite the upper shadow, sentiment for crude oil remains firmly bullish, and yesterday’s oil trading session gave us some strong signals for the next few days.
