Crude Oil Surges Over Disappointing API Report
FxGrow | Apr 26, 2017 21:03
h2 Fundamentals/h2
On April 25th 2017, API released a report showing a significant increase 897000 barrels compared to -840000 barrels on previous week sessions, causing crude oil levels to surge +$0.95 after plunging yesterday to 48.86 weekly low. Today, at 5:00 AM GMT, crude levels clocked 49.49 high, still $0.32 below yesterday's 49.81 high. Although API report was positive, expectations were eyed at 1.6M barrels, pushing oil a bit higher. The market will watch closely Wednesday morning to see whether official data from the US Energy Information Administration confirms the API numbers. [EIA/S]
As political turmoil in Venezuela mounts, oil firms including Norwegian major Statoil ASA (OL:STL.OL) and Spain's Repsol SA (MC:REP.MC) have further reduced their already-dwindling ranks of expatriate employees in the country, sources familiar with the situation said. (Reuters).
Russia wants to see more analysis of the global oil market and will wait for OPEC's meeting next month before deciding whether to back an extension to an oil supply reduction deal, Russian Energy Minister Alexander Novak said on Tuesday.
The Organization of the Petroleum Exporting Countries OPEC, along with Russia and other non-OPEC producers, pledged to cut output by 1.8 million barrels per day (bpd) in the first half of 2017.
With global crude inventories stubbornly high, Gulf and other producers have shown increasing desire to prolong the pact to the end of 2017. Russia has yet to state publicly whether it wants cuts to run beyond June. After talks in Doha with Qatari Energy Minister Mohammed al-Sada, Novak told reporters that Russia prefers to wait until an OPEC meeting in May to decide on any extension. OPEC and non-OPEC states meet on May 25. Russia also mentioned previously that it would hold negotiations with OPEC on May 24th.
Currently, OPEC compliance with the supply deal stands at 95%, 1% up from last February estimate of 94% and a record high, according to recent Reuters surveys.
"We are seeing right now a level of compliance with the Vienna agreement reached in December that we are satisfied with," the Qatari minister told reporters after meeting Novak.
Look forward for U.S Inventories today 2:30 PM GMT.
h2 Technical Overview:/h2Trend: Downward / Sideways
Resistance levels: R1 49.91 , R2 50.59, R3 51.70
Support levels: S1 48.84, S2 48.16, S3 46.99
Get The App
Comment: The market is bearish with sideways trading. Yesterday's reversal from S1 indicates a fight for dipping forces. A close below S1 allied with congestion and increase selloffs towards S2 level. A penetration for R1 projects further bull waves towards R2. Closing above R2 level alerts for trend reversal and bullish trend is confirmed 100% if market closed above R3 level.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.