Crude Oil on Monday 20th March 2017, Crude Oil March futures prices down by 27pts (0.83%) closed at 3218, trading range between 3185-3240.On the New York, Mercantile Exchange, Crude oil for February delivery on the New York Mercantile Exchange to settle at $48.91 a barrel.
Crude prices kept falling on Monday on ongoing selling pressures due to rising U.S. production that offset OPECs output cuts earlier this year.
Crudes current decline started two weeks ago, on oversupply concerns as U.S. stockpiles kept rising, while shale production surges, heaping pressure on prices.
Negative pressures mounted on prices after earlier data showed the U.S. oil rig count up by 14 rigs in the week ending March 17 to a total of 631, the highest since September 2015. The data reinforced projections of rising U.S. production, which reached 9.1 million bpd in the week ending March 10, the highest since February 2015.
OPEC said it prefers to extend the production cuts beyond the June deadline in order to support prices and achieve balance, while calling on other producers like Russia to extend their cuts as well according to the deal.
Saudi oil minister Khalid Al Faleh said in a Bloomberg interview that the deal to cut global production might be extended beyond June if global stockpiles were still higher than the five-year average.
Traders may note today’s economic event
Tuesday, March 21th
1. The American Petroleum Institute, an industry group, is to publish its weekly report on U.S. oil supplies and OPEC Monthly Report.
I have been looking to the Intraday 1 hour charts in Crude Oil Market formed “Falling wedge Chart pattern” in this pattern the current downtrend has been extended 3200-3180. If break above the resistance green at 3250 then reversal to up move target 3311-3400. Rise on sell in resistance place around 3240 Stop loss at 3266.
It can be predicted according to technical research view that, if the crude oil daily candle closes above 3250 level, the recovery is likely up to 3315-3400 level.
We can also note a “SELL SIGNAL” if we break down below the bottom low at 3100 and down side rally expected 3000-2960 level.
Today Research Reports call:
Crude oil Rise on Sell 3235-3240 target 3200-3180 stop loss at 3266.
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