The Energy Bulletin Weekly: 15 June 2020 - Resilience

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The Energy Bulletin Weekly: 15 June 2020 - ResilienceThe Energy Bulletin Weekly: 15 June 2020 - ResiliencePosted: 15 Jun 2020 12:00 AM PDTTom Whipple and Steve Andrews, EditorsQuotes of the Week"Losses this year will be the biggest in aviation history. There is no comparison for the dimensions of this crisis." Alexandre de Juniac, Int'l Air Transportation Assoc.'s CEO"It remains unclear if oil demand will ever return to pre-pandemic levels. From the destruction of the aviation industry to the transformation of workplace dynamics reducing daily travel and governmental pushes for renewable energy, oil demand is being attacked on all sides due to COVID-19. The oil majors seem to have recognized this global shift and are determined to make their operations as lean and sustainable as possible. 2020 is shaping up to be the most dramatic year in the history of oil markets, with a decade's worth of change seeming to be taking place in just 365 days." Charles Ke…

Crude Oil Price Forecast - Crude Oil Markets Fill the Gap - FX Empire

WTI Crude Oil

The WTI market has initially gapped lower to kick off the week, but then turned around on Monday to fill that gap. At this point it looks as if we are going to try to go higher, reaching towards the 200 day EMA again. The $41.58 level above offers resistance, and of course the 200 day EMA is likely to offer that same resistance. At this point in time it is likely that the buyers will continue to come in and try to pick up a bit of value on dips. To the downside, the market is likely to see support near the 50 day EMA currently sitting underneath the $35 handle.

Crude Oil Video 30.06.20

Brent

Brent markets also gap lower but then turned around to fill showing signs of strength yet again. At this point in time, the market is likely to see a lot of noise, but quite frankly I think it is only a matter of time before we go back to fill the gap above at the $45 region. Ultimately, I like the idea of buying short-term pullbacks as Brent has shown itself to be rather resilient. With all of this in mind, I like the idea of buying these little dips that occur, with an eye on the 50 day EMA underneath as support. Gaps do get filled eventually, and the gap in the WTI market already has been filled. In other words, it is likely that we get a move given enough time. I have no interest in shorting crude oil, at least not yet.

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