Oil prices ended a bit higher on Friday but still posted a weekly loss as energy markets continued to weigh what the impact of Harvey will be on crude production and refinery demand in the Gulf of Mexico region.
When the Crude Oil market is discussed, typically there is a conversation about the end user demand such as economic growth, and consumption demand with season peaks or the upstream effects. Upstream, which is oil and gas nomenclature for exploration and production, has been of keen interest over the last few years as US output and exporting has been at record levels, and is seen as a key reason why the price of Oil has been hesitant to break above $50/bbl.
A week after Harvey’s landfall, assessing damage and demand impact still premature
Last major crises in the region (Katrina 2005) was followed by ~18% drop in Oil
Per BHI, US Oil Rigs unchanged WoW. Rig count stable at 759 active US oil rigs
Falling crude prices have weighed on U.S. drilling activity over recent weeks, as data from oilfield services firm Baker Hughes showed the number of U.S. oil rigs held steady at 759 last week.
The weekly rig count is an important barometer for the drilling industry and serves as a proxy for oil production and oil services demand.
Oil prices have been under pressure in recent weeks as concern over rising U.S. shale output cancelled out production cuts by OPEC and non-OPEC members.
Crude Oil closed the week at 47.30. On Daily Chart, 47.76 is the daily resistance. Both Fibonacci Expansion Line 50% and MA20 will act as a strong resistance at 47.76. Break above this level will carry the price 48.65.
46.65 is an important support and very important level for the continuation of downward movement. 45.60 is the ultimate support and break below this level will carry the price towards 43.60 USD.
U.S. and Canada will be closed tomorrow. We may expect an upward attempt towards 47.76.
To get a better idea for tomorrow we will take a look at the H4 Chart.
Crude Oil price is testing the MA100 resistance and above MA50. The current price level is the top of the trading range according to MM Lines. 47.66 and 48.07 are the important resistance levels if the price breaks above the MA100 resistance.
RSI headed North, MACD neutral with a small upward signal. Combining D1 and H4 Charts and the fundamentals I will leave pending SELL orders to resistance levels. My stop sell level is 49.60
When the Crude Oil market is discussed, typically there is a conversation about the end user demand such as economic growth, and consumption demand with season peaks or the upstream effects. Upstream, which is oil and gas nomenclature for exploration and production, has been of keen interest over the last few years as US output and exporting has been at record levels, and is seen as a key reason why the price of Oil has been hesitant to break above $50/bbl.
A week after Harvey’s landfall, assessing damage and demand impact still premature
Last major crises in the region (Katrina 2005) was followed by ~18% drop in Oil
Per BHI, US Oil Rigs unchanged WoW. Rig count stable at 759 active US oil rigs
Falling crude prices have weighed on U.S. drilling activity over recent weeks, as data from oilfield services firm Baker Hughes showed the number of U.S. oil rigs held steady at 759 last week.
The weekly rig count is an important barometer for the drilling industry and serves as a proxy for oil production and oil services demand.
Oil prices have been under pressure in recent weeks as concern over rising U.S. shale output cancelled out production cuts by OPEC and non-OPEC members.
Crude Oil closed the week at 47.30. On Daily Chart, 47.76 is the daily resistance. Both Fibonacci Expansion Line 50% and MA20 will act as a strong resistance at 47.76. Break above this level will carry the price 48.65.
46.65 is an important support and very important level for the continuation of downward movement. 45.60 is the ultimate support and break below this level will carry the price towards 43.60 USD.
U.S. and Canada will be closed tomorrow. We may expect an upward attempt towards 47.76.
To get a better idea for tomorrow we will take a look at the H4 Chart.
Crude Oil price is testing the MA100 resistance and above MA50. The current price level is the top of the trading range according to MM Lines. 47.66 and 48.07 are the important resistance levels if the price breaks above the MA100 resistance.
RSI headed North, MACD neutral with a small upward signal. Combining D1 and H4 Charts and the fundamentals I will leave pending SELL orders to resistance levels. My stop sell level is 49.60
