Oil price set to reverse

29 June, 2017

The oil price has continued its winning streak today, racking up its 6th straight day of gains with some analysts failing to understand the reasons behind the rally.

The jump in price over the last week may be attributed to extended cuts in oil production from Opec and Non Opec members, but according to some not all members are sticking to the deal and it’s only a matter of time when this is reflected in the price,

“Sentiment remains that the market is oversupplied with OPEC members reluctant to further curb production,” said Enrico Chiorando, a U.K.-based analyst at energy consultancy Love Energy.

“Having pledged to ‘do whatever it takes’ to support prices, OPEC still faces ever-rising stocks and a hesitancy from producers for deeper cuts.” He added.

After six straight days of gains, some predict that it may be time to get out and book in profits as the inevitable downturn in oil could come at any time now, and the reversal could be sharp and strong,

"There's a real problem out there in the crude oil market. You're going to get a rally and the market is rallying today. It's been rallying for the past 4 or 5 days. It is nothing but a dead cat bounce," noted commodities trader Dennis Gartman, the editor and publisher of The Gartman Letter.

Mr Gartman also said that he agreed with some of the world’s most knowledgeable  figures on oil, who predict that within the next two decades other sources of energy will be mainstream and oil will be made redundant,

"I'll go with the Deputy Crown Prince of Saudi Arabia, Mohammed bin Salman, who has made it abundantly clear that he thinks crude oil over the course of the next 20, 30 years is going to be essentially worthless." He added.


Source link  
Oil surges on conflict concerns

The oil price has continued to rise in today’s trading session after yesterday’s gains on the back of attacks on two oil tankers in the Gulf of Oman...

Gold need to hold this level

The gold price is now trading at its lowest level since the start of the year and is now consolidating around the $1275 mark and according to one...

Gold faces key moment

The gold price has remained above the $1300 mark in today's trading session after breaking this important level yesterday and today's outcome...


US dollar down on dovish Fed

As predicted yesterday, the Fed kept interest rates on hold but the following monetary statement was much more dovish than analysts had predicted...

Gold needs some big news

The gold price is under further pressure in today's trading session as investors ponder the chances of another rate hike from the US Federal Reserve after the release...

Good news for the precious metal

Gold just got another reason to cheer after the latst minutes meeting from the US Federal reserve where the tone left many analysts predicting that...


Gold to stay above $1300

The gold price has recovered strongly over the past 3 trading sessions after coming perilously close to touching the $1300 mark and...

Oil price hinges on trade talks

Oil is down once again in today's trading session as investors and the market alike remain divided on the future direction of the price with a lot...

Oil needs Opec cuts

The latest tumble in the oil price has now reached gigantic levels, almost equaling the declines reached during the global financial crisis and according to some analysts, we may...

  


Share it on:   or