WTI bears on hold but recovery attempts lack momentum for stronger lead
IEA: 2020 oil demand growth estimates unchanged at 1.2 Mb / d
In its January oil market report, the International Energy Agency (IEA) offers the following projections while warning that the Middle East crisis is far from over.
Iraq’s oil supply is potentially vulnerable amid growing political risks in the region.
US-Iran tensions and Iraqi protests have had minimal impact on oil operations.
But the fragile situation may limit Iraq’s plans to increase oil production capacity.
This can make it difficult for the global industry to meet growing demand in the long run.
WTI OIL outlook: bears are on hold but recovery attempts lack momentum for stronger progress
The price of WTI oil rebounded Thursday after a triple failure to clear 200DMA support ($ 57.70).
The initial reversal signal forms on the daily chart after price action over the past two days has ended in Doji candles and further higher.
Short-term action is also supported by the increase in the daily cloud which increases the risk of a reversal. The Daily Stochastic is on the way out of the oversold zone and the RSI is turning north, but momentum remains strongly negative and may hamper attempts to recover. Read more…
WTI drops below $ 58 after IEA report
The WTI (NYMEX Oil Futures) reverses intraday gains and is trading moderately flat in European trade, having encountered new supply in the last hour after the bearish monthly oil market report of the International Energy Agency (IEA) has affected investor sentiment.
The IEA report showed that the oil production of non-OPEC countries, including the United States, is on the rise while maintaining estimates of global oil demand growth for 2020 at 1.2 million barrels per day (bpd). He further said that increasing non-OPEC oil production will help the market stave off any threat of supply disruption such as the recent Middle East surge.
As soon as the report was released, black gold fell from a high of 58.37 to new daily lows of 57.88. The mixed feelings in the market over the US-China trade deal are also limiting the recovery of high-yielding oil. Read more…