18.51 +0.01 (0.05%)
After hours: 4:16PM EST
|Bid||18.53 x 800|
|Ask||18.55 x 2200|
|Day's Range||18.15 - 18.55|
|52 Week Range||16.62 - 21.98|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||-12.00%|
|Beta (5Y Monthly)||1.94|
|Expense Ratio (net)||0.90%|
Crude oil markets initially fell during the trading session based upon fear in Asia and the Chinese situation in general. Ultimately, this is a market that continues to suffer at the hands of lack of Chinese demand, but it appears that we are trying to form a base.
Traders are beginning to lose patience with Russia, which is one reason for today’s weakness. Furthermore, talks on holding an early meeting in February went nowhere, which means OPEC+ won’t meet until March.
The Presidents’ Day holiday in the United States will have kept the crude oil markets a bit quiet due to the fact that volume was so thin. That being said though, there is an interesting technical set up coming.
Even though some traders believe that stimulus from China and additional production cuts from OPEC could help stabilize crude oil demand, it may not be enough over the short-run. Furthermore, the long-run is still an unknown so any gains are likely to be limited.
The bearish demand forecasts from OPEC and the IEA are likely going to encourage OPEC and its allies, especially Russia, to implement the additional production cuts recommended the week-ending February 7.
It’s a busy week ahead, with private sector PMI numbers likely to reflect the impact of COVID-19 on economies. Falling cases should soften the blow, however.
Crude oil markets have had a positive week, something that we have not been able to say for a moment now. We are at the very lows of the overall consolidation, so if we can break above the top of the candlestick from this week, that could be a good sign.
The fact that investors ignored the huge crude oil build indicates the focus for traders is on the OPEC+ plan to make additional cuts to production.
Crude oil-related ETFs may continue to suffer as global oil demand is expected to decline for the first three months of the year, marking the first quarterly drop in over a decade. Year-to-date, the United States Oil Fund (USO) , which tracks West Texas Intermediate crude oil futures, decreased 15.6% and the United States Brent Oil Fund (BNO) , which tracks Brent crude oil futures, plunged 13.8% as WTI crude oil futures dropped to $551.3 per barrel and Brent crude fell to $56.2 per barrel. The depressed prices could linger as the International Energy Agency blamed a global drop in quarterly oil demand for the first time in over a decade to a likely economic slowdown in China related to the novel coronavirus outbreak, the Wall Street Journal reports.
The coronavirus continues to have a significant impact on oil prices. A report that the outbreak might be easing sent crude prices sharply higher on Wednesday. However, with no signs that the virus is under control, traders can expect crude prices to remain under pressure.
The bearish demand forecasts from OPEC and the IEA are likely going to encourage OPEC and its allies, especially Russia, to implement the additional production cuts recommended last week.
Updates from China and beyond on the coronavirus continue to grip as central banks and governments attempt to downplay longer-term impact.
Crude oil markets have rallied a bit during the trading session on Wednesday, in a bid to recover from psychologically important figures. Having said that, we are at the extreme of the overall range, so oil needs to make a stand now or simply fall apart.
Crude prices have headed higher on Tuesday, but the gains could prove to be short-lived. OPEC has revised its growth forecast for 2020, and unless it lowers production output, we could see crude break below the $50 level.
The API reported a larger than anticipated crude oil inventory build of 6-million barrels for the week-ending February 7. Traders were looking for a 2.987-million barrel build in inventory.
Crude oil markets rallied a bit during the trading session on Tuesday, to continue to show signs of resilience. Ultimately, it’s very unlikely that the entire fundamental situation has changed.
U.S. crude is struggling to stay above the symbolic $50 level. OPEC has proposed cutting output in response to falling prices, but it’s unclear if Russia will go along with this proposal.
The tight trading range is being generated by comments from Russia Energy Minister Alexander Novak on Friday. He said Russia needs a few more days to assess proposals for deeper oil output cuts and could formulate a response possibly this week.
Crude oil markets broke down a bit during the trading session Monday to kick off yet another potentially negative week. There are still a lot of concerns about demand coming out of China, and therefore we are seeing negativity.
Crude is putting strong pressure on the $50 level, which has psychological significance. Investors are looking ahead to Tuesday, when Fed Chair Jerome Powell testifies before Congress.
WTI and Brent crude oil are going to have a hard time rallying as long as Russia stands in the way of the production cut increases.