Oil: 53.69, +0.56.
Hanging on over the 50 day EMA and 5
2.50 support in a weeklong lateral move. Trying to make a break higher from a 9 week inverted head and shoulders that formed after a 2 month selloff.
Source: investment House
The 12 vessels are making voyages of as much as 21,000 miles direct from Asia, all the way around South Africa, holding nothing but seawater for stability because Middle East producers are restricting supplies.
Still, America’s booming volumes of light crude must still be exported, and there aren’t enough supertankers in the Atlantic Ocean for the job. So they’re coming empty.
OPEC members are likely cutting heavier grades while American exports are predominantly lighter.
"Saudi Arabia is now implementing a 'Saudi-first' oil policy, and the market should take seriously OPEC's pull-back on production to support prices after the declines late last year".
Recent sharp reduction in output by the Kingdom from 10.6 million barrels a day in December to a likely 10 million last month.
The figures would indicate a 35% production cutback this month compared to December.
Steep supply reductions of that sort would ultimately lead to skyrocketing oil prices.
If the Iranian waivers don't get renewed then, that will mean another cut in the global oil supply, and hence even higher oil prices.
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