Crude Oil Relinquishes this Week's Gains - Moneyshow.com
Both major oil contracts have given up large chunks of their weekly gains, writes Fawad Razaqzada . After an early surge to new 2019 highs, both major oil contracts have given up large chunks of their weekly gains. WTI is down for the third consecutive day, while Brent is down for the second day. Prices were barely hanging onto their now small weekly gains at the time of writing. Prior to this week, Brent had risen for five and WTI for eight consecutive weeks. Clearly, prices had been technically “overbought” and a correction of some sort was imminent. It remains to be seen how far oil prices will fall given the still supportive market conditions, with the OPEC+ group of producers continuing to restrict supply and the U.S. government tightening sanctions against Iran. On top of this, you have ongoing production outages from Venezuela and yesterday an important pipeline in Russia had to be suspended due to contamination. Thus, if oil prices were to weaken further, this would either h