END OF STRIKE IN KUWAIT, will this cause oil to head lower?

[donaldprice]

Greeting all, at 11pm this evening, the strike in Kuwait ended. 3 million barrels of oil per day, this country was producing. 

Therefore will we see oil now head lower, looking at the chart today, towards later in the day, oil appeared to be struggling up the trend line, therefore between oil strike now ending and oil inventories out tomorow, time will only tell where this trend will go.



 

[donaldprice]

Appears then, that oil broke the tramline, at present heading lower, therefore fib levels to watch 50 and 61% levels.

Article from the FT this morning: https://next.ft.com/content/908850b1-88e3-323f-9fd9-dfd7a091ea08

 

 



[Mercury]

Thanks for that info donaldprice, it's always nice to have a narrative but I think the big one is that the Doha meeting has shown us that these guys are not yet in a political place where they can get together on action, gotta love a free market...

 

I believe the market had over bought the Doho coolade and now a natural counter move is ensuing.  We have had an EW 1-5 down (pink lines), followed by an A-B-C back up to the Fib 88% (it was a very strong rally so the retrace was also strong) and now a turn back down.  I am anticipating a move down in EW1 followed by yet another strong retrace before the wheels come off the rally and the drop begins in earnest.

 

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