19.89 -0.14 (-0.70%)
After hours: 5:05PM EST
|Bid||18.72 x 1300|
|Ask||20.11 x 1100|
|Day's Range||19.97 - 20.20|
|52 Week Range||16.62 - 21.98|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||-2.07%|
|Beta (5Y Monthly)||2.04|
|Expense Ratio (net)||0.90%|
Crude oil markets broke down during the trading session on Wednesday, slicing through the last vestiges of support and looking very vulnerable at this point.
While there was some electronic trading on Monday, now that the Martin Luther King Jr. holiday is over with, more volatility and liquidity was available in the futures markets.
Today’s price action suggests what we’ve been saying for about two weeks – crude oil prices are likely to remain rangebound as sellers, betting on slower demand growth, keep a lid on rallies, and buyers hoping for higher demand because of the U.S.-China trade deal, bet on a global economic recovery.
Crude oil markets were a bit sluggish during the trading session on Monday, but with a lack of volume due to the Martin Luther King Jr. holiday, it’s not a huge surprise that we didn’t really go anywhere.
The COT report covering the week to January 14 showed the hedge funds reaction to Middle East deescalation with crude oil and gold longs being cut. The imminent signing of the U.S. – China trade deal meanwhile helped drive demand for industrial metals and agriculture commodities.
With only a couple of data releases amidst the Fed’s communication blackout period, this holiday-shortened week looks to be relatively lackluster from the US economics perspective.
The tailwind from better than expected data continues to support equity markets as US stocks traded at record levels, and those in Europe notched new highs on Friday after Chinese growth data reassured investors over the health of the world’s second-largest economy.
With prices returning to their early December levels, we could see more rangebound trading now that the trade deal is in the books and there has been a de-escalation of tensions between the United States and Iran.
Crude oil markets stabilize a bit during the day on Friday, which of course is a good sign considering that we had pulled back so drastically. That being said, it looks like the 200 day EMA continues to offer support.
The crude oil markets fell initially during the week but have turned around to show signs of life again by forming a hammer. This has happened in both grades that I follow here at FX Empire.
After watching Crude Oil fall from the $65 ppb level to the $58 ppb level (-10.7%) over the past few weeks, we still believe the energy sector is setting up for another great trade for skilled investors/traders.
hort-covering tied to technically oversold conditions could be driving the price action on Friday. Speculators betting on renewed tensions in the Middle East could also be behind this week’s strength.
Crude is steady, as it trades just shy of the $59 level. After a rough start to the week, crude has bounced back, with the signing of the Phase One trade accord and a surprise EIA crude inventory drawdown.
Crude oil markets look as if they are finding a bit of support here, as the 200 day EMA acts as support. After getting hammered over the last week or so, value hunters have returned.
With significant downside risks to the global economy turned aside, and worries over a possible recession diminishing, there is a sprouting belief supported by evidentiary proof in the data that global growth could gain momentum over the coming months.
In addition to the fundamental developments, technical factors are also contributing to the early strength with the markets finding support on a test of a key 50% level.
Crude oil markets have dropped a bit during the trading session on Wednesday, testing the absolute middle of the overall range that we have been in.
U.S. crude oil has settled down and is trading just above $58.00 for a second straight session. The EIA crude inventories report, which will be released at 15:30 GMT, has forecast a small surplus of 0.4 million.
In addition to the surprise build in oil inventory, crude oil is also being pressured by uncertainty about the effectiveness of the U.S.-China Phase One trade deal after a top U.S. official said tariffs on Chinese goods would stay in place even after the agreement is signed.