Jump to content

Crude oil pings higher as specs told to ‘Watch Out’ by OPEC+


Recommended Posts

Crude oil ran to a three-week peak overnight after speculators were warned; US inventory data did an about-face, dropping significantly after a large add prior and can the cartel cut production to boost WTI crude oil prices?

 

BG_opec_oil_meeting_84098098.jpgSource: Bloomberg

 

Daniel McCarthy | Strategist, | Publication date: Thursday 25 May 2023 

Crude oil staged a rally going into Thursday despite the US dollar roaring higher alongside Treasury yields.

Comments from Saudi Arabia Minister of Energy Abdulaziz bin Salman, assisted the bounce when he rattled the sabre, saying, “speculators, like in any market, they are there to stay. I keep advising that they will be ouching. They did ouch in April. I don’t have to show my card, I’m not [a] poker player… but I would just tell them, watch out.”

In early April, OPEC+ announced that they would cut production by 1.1 million barrels per day. This news saw crude gap higher to levels not seen since November 2022.

The reality is that OPEC+ is notorious for not being able to meet their production target and regularly overshoot.

 

original-size.webpSource: Bloomberg. Chart created by Ilya Spivak at Macro Money

The weekly US Energy Information Agency (EIA) data released overnight saw stockpiles drop dramatically, overcompensating for last week’s run-up in inventory.

12.456 million fewer barrels were stored in the week ending May 19th. The week prior saw 5.04 million barrels added.

Elsewhere, the Canadian wildfires appear to have been contained to a certain extent for now and it’s being reported that production and supply are back to normal levels.

For now, it appears that the shorts have been squeezed but it seems there is a lack of follow-through at this point.

WTI crude oil technical analysis

WTI overcome resistance making a high of 74.73 overnight. The 34- and 100-day Simple Moving Averages (SMA) are just above the market and may lend resistance near 75.15 and 76.92 respectively.

On the downside, support might be at previous resistance levels down toward 73.60. Further down, support may lie at the breakpoints and prior lows of 69.41, 66.82, 66.12, 64.36, 63.64 and 62.43.

Crude oil daily chart

 

original-size.webpSource: TradingView

This information has been prepared by DailyFX, the partner site of IG offering leading forex news and analysis. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • Hey all, as some of you know, I've been reviewing quite a few new crypto projects lately and breaking down what they're about and the problems they aim to solve. Today, I'll be doing the same for a platform called HiveSwap. HiveSwap is a decentralized exchange operating specifically within the Bitcoin ecosystem. It utilizes the MAP Protocol to enable interoperability and facilitate seamless token swaps across Bitcoin's various layers - the base layer, layer 2 networks, and the MAP interoperability layer itself. A major selling point is HiveSwap's ability to bridge the gap and allow swaps between Bitcoin ecosystem assets and those from major EVM chains like Ethereum, BNB Chain, Polygon, and more. This cross-chain functionality is huge. The platform is also tackling liquidity issues for emerging asset classes like inscriptions and BTC-related tokens. HiveSwap provides a decentralized avenue for swapping these types of assets and creating liquidity pools, rather than being confined to centralized venues. With its robust underlying swap technology framework, HiveSwap ensures reliability and security for users contributing liquidity. It also incentivizes liquidity provision through liquidity mining rewards paid out in tokens. Overall, HiveSwap is positioning itself as the leading decentralized exchange within the Bitcoin realm. It's solving key interoperability challenges, bringing much-needed liquidity to newer assets, and leveraging proven tech for secure, trustless cross-chain/cross-layer swaps. HiveSwap is bridging multiple gaps in Bitcoin DeFi.
    • For those who love memecoins, there's an exciting new project called RUNES•X•BITCOIN that's worth checking out.    It's a meme coin developed using the Runes protocol on Bitcoin's blockchain. The "X" theme is a clever reference to Elon Musk and the idea of limitless possibilities.   But what makes it truly unique is that it's 100% decentralized and community-driven. The entire token supply was airdropped for free to anyone holding assets with the letter "X" in the name or ticker.   So if you had X domains, X NFTs, or BRC20 tokens containing X, you automatically received free RUNES•X•BITCOIN tokens. How's that for decentralized distribution?   The project has already exploded in popularity. Over 100,000 addresses now hold this Rune, making it the biggest one by that metric. And get this – the market cap skyrocketed from $2.1 million at launch to over $13 million! Insane growth. If you're looking to get involved, I heard Bitget has a series of events planned for this project, so you might want to check those out.   Some other key highlights: - The Rune code 110# seems to have a hidden meaning  - It utilizes cutting-edge Runes tech built on Bitcoin's UTXO model for fungible tokens - Fully decentralized, with no central control   RUNES•X•BITCOIN is bringing meme culture and community experience to Bitcoin in an innovative, decentralized way. While it might be considered a legitimateshitcoin, the concept and crazy early traction are certainly wild! It's definitely a project worth keeping tabs on in the BTC space.
    • I guess alot of people will be smiling rn having recieved their airdrop allocation some couple of hours ago. ANd with the pretrading price at $2, a lot of those farmers are anticipating huge cash out but let's see what the listing brings!
×
×
  • Create New...
us