Crude oil extended gains as investors seek bargains- Investing.com
Crude oil held prices gains in Asia on Friday in a
bargain-hunting rally that follows recent sharp falls and shrugging off a
stronger dollar. Overnight, crude futures surged more than 5% on Thursday,
bouncing from near 12-year lows as dovish comments from Mario Draghi on the
possibility of further easing measures from the European Central Bank helped
rally global equities, providing energy traders with an opportunity to cover
record short positions.
Previously, WTI crude had tumbled more than 20% in 2016 amid
further signals of a widening gulf between worldwide supply and demand, as
Iranian exports return to global markets.
Investors appeared to have every reason to continue to
depart from their long positions in crude on Thursday, following a bearish
supply report from the U.S. Department of Energy.
In its Weekly Petroleum Status Report, the Energy
Information Agency (EIA) said Thursday that U.S. commercial Crude oil inventories
rose by 4.0 million barrels for the week ending on January 15, significantly
above forecasts for a 2.8 million build. At the same time crude production rose
to 9.235 million barrels per day last week, its seventh consecutive weekly
increase, while Motor Gasoline inventories rose by 4.6 million barrels to reach
its highest level since 1990.
Still, a host of traders anticipated even more bearish
figures after the American Petroleum Institute reported an inventory spike of
4.6 million barrels in its weekly report on Wednesday afternoon.
At the Cushing Oil Hub in Oklahoma, inventories rose by only 191,000,
increasing by levels much less than some investors had feared. Storage at the
facility, the main delivery point for Nymex Oil, is nearing full-capacity.
Crude prices have plummeted more than 50% in the last 14
months after OPEC rattled global energy markets with a decision in November,
2014, to keep its production ceiling above 30 million bpd. The strategy
triggered a prolonged battle with U.S. shale producers for market share,
depressing prices amid a glut of oversupply.
Energy traders also reacted to dovish comments from Draghi
on the increased likelihood that the ECB could approve further easing measures
when it meets next in two months. The potential for easy monetary policies in
the euro zone helped global equities rally from Wednesday's rout, providing a
boost to oil. The ECB, as expected, left its benchmark interest rate and
deposit rate unchanged at a meeting in Frankfurt on Thursday.
For the week ending on January 12, the U.S. Commodities
Futures Trading Commission (CFTC) said bearish positions in WTI crude rose by
15% from the previous week resulting in the highest level in net short positions
over the last decade.
Crude Oil
Yesterday, we clearly indicates that Crude oil looks
positive. It spurts and made a high of 2116 mark. Gained more than 12% in less
than 24 hours
Now what to expect???
Crude oil is now good for jobbing prospects. Bottom fisher
grabbed the opportunity in Crude oil and they will continue bottom
fishing.
Have patience and buy on dips is good trading strategy but
in a very small quantity. So that you will not get stuck in sudden fluctuations
Don't go for aggressive buying as it will move in zigzag way
but yes its a good opportunity for traders to trade with in and out
strategy.
Buy Crude oil mini or Crude oil in every 100 points down and
sell at every 100 points gain. Hold some quantity in your hand for further
move.
We will expect short term target of 2300---2400 mark
What about levels???
Crude oil has support at 2025---1980 and Resistance at 2170
Looks positive and could test its resistance level of 2170
mark. Weekly close above 2170 will take to 2210---2250 and then to 2320 mark
else it could test its support level of 2025---1980 again
In panic will buy... Positional stop loss below 1850 on
closing basis
Trade with levels only...Anything seems will update via App.
Gold
Support at 26150---26080 and Resistance at 26470
Below 26150... will see panic till 26080. Decisive break and
sustain below 26080 will see further panic till 25920---25850 and then to 25760
mark in days to come
Else it could test its resistance level of 26410---26470
again
Fresh buying can initiate only close above 26470 mark
Traders can trade with levels only... Anything seems will
update via App.
More will be update soon!!
