9/23/2023 0 Comments Crude oil price marketwatchThe relative strength index, a momentum indicator, has turned up and other technical signals point to a "constructive big picture set up for oil prices" heading into the fourth quarter of this year to the second half of 2024, said Ciana. WTI oil found support when retesting lows in the $62s this year, he said, with prices rallying from this point and traders buying the August dip. Oil prices have rallied from key support levels, suggesting that the correction is over and prices may rally in the months ahead, said Paul Ciana, technical strategist at BofA Securities, in a note dated Monday. That happens when a short-term moving price average crosses above a long-term moving average. The climb for oil follows bullish technical moves in prices.īoth front-month WTI and Brent crude futures formed so-called golden crosses on Aug. "The quandary becomes whether the kingdom is willing to keep cutting exports and losing market share into 2024 if Brent crude remains below $90 a barrel," Smith told MarketWatch. Saudi Arabia is well aware that oil market is transitioning into a low-demand period of the year, said Matt Smith, lead oil analyst, Americas, at Kpler, and having already made production cuts for three months - July through September - it believes additional cuts are needed to support prices into year-end. However, demand historically starts to decline in September and refinery turnarounds begin, lowering physical demand for crude, he said. The Saudis' month-to-month production cuts had been taking place during the strongest demand season of the year - the summer, said Peter McNally, global sector lead for industrials, materials, and energy at Third Bridge. Read: Energy stocks lead S&P 500 again, as Saudi Arabia, Russia extend crude-supply cuts benchmark West Texas Intermediate crude for October delivery rose $1.14, or 1.3%, to $86.69 a barrel on the New York Mercantile Exchange, settling at their highest since Nov. It settled at $90.04 a barrel on ICE Futures Europe, up $1.04, or 1.2%. On Tuesday, global benchmark Brent crude for November delivery traded above $90 a barrel to the highest levels year to date. Three three-month extension is "really sending a message that they have gained control over the market." The Organization of the Petroleum Exporting Countries and their allies, together known as OPEC+, didn't want to "keep the drama up month after month, having the market speculate on whether they would keep production cuts in place," he said. The extension of the output reductions is "very bullish' and means that oil supplies will continue to tighten into the end of the year," Phil Flynn, senior market analyst at The Price Futures Group, told MarketWatch. Separately, Russia's Deputy Prime Minister Alexander Novak announced that his country will extend its additional voluntary cut in oil supplies by 300,000 barrel a day until the end of December. Saudi Arabia said Tuesday that it will extend its voluntary cut of 1 million barrels a day to the end of the year, according to the country's official press agency, citing an official source from the Ministry of Energy. benchmark West Texas Intermediate crude above $100 and beyond in the months ahead, Some analysts believe the move by some of the world's biggest oil producers may lift U.S. Oil prices have climbed to their highest levels of the year, buoyed in part by news that Saudi Arabia and Russia have extended their production cuts to the end of the year, even as demand uncertainty continues to hang over the market outlook. ‘I’m moving from L.A.Saudi Arabia, Russia extend supply cuts, triggering surge in crude prices Semtech announces Mark Lin as incoming CFO Want to retire, but need to keep working? Sometimes you can’t do either. ‘We’re dreaming of a new life’: My wife and I have $2.5 million saved. Is it a bad idea to get married?Īppeals court scales back order squelching Biden administration contact with social media platforms ‘I’m conflicted’: My fiancé earns less than me, and racks up credit-card debt. ‘She needs the money for care’: My 103-year-old grandmother’s adviser bought 5 bank stocks. ‘The dream of homeownership is alive,’ says BofA’s head of retail lending. Should I follow the 4% rule if I don’t want to leave an inheritance? I’m retiring at 65 with $2 million, an $850,000 home and $3,500 a month in Social Security.
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