Mixed messages for the markets raise oil above the $50 mark.
Messages from the global oil industry are mixed but oil investors decided to take a relatively bullish position on WTI oil, raising the commodity from Wednesday intra-day lows of $49.59 to Thursday’s highs of $52.21.
In the Middle East the OPEC leader Saudi Arabia announced that it will raise it selling price per barrel in April to buyers in the U.S, Europe and Asia. This statement gave investors the confidence in oil they needed to buy as Saudi Arabia’s Oil Minister Ali al-Naimi said in a speech in Berlin Wednesday that oil “demand is gradually rising, global economic growth seems more robust and the oil price is stabilizing.”
However, the counter argument for price hikes comes from U.S data released on Wednesday regarding U.S oil inventories that saw a massive spike in Crude Oil Inventories up to 10.303M versus an estimate of 4.157M and a previous figure of 8.427M, according to the Energy information Administration.
Also released on Wednesday was the so-called Beige Book from the U.S Federal Reserve Bank, covering conditions from early January to mid-February, that reported a slowing in growth in specific sectors, manufacturing, agriculture and energy exploration, due to low oil prices and the strong dollar.
In the meantime, Rex Tillerson, CEO of ExxonMobil was reported in the Financial Times as saying, “My view is people need to kind of settle in for a while. There’s a lot of supply out there. And I don’t see a particularly healthy world economy.” Speaking to analysts in New York, Tillerson noted that global supplies were not due to run out soon with the U.S producing more and China demanding less.
Crude Oil - Day Trading Strategies from STOCK.com
Bullish scenario: Long positions above the daily pivot point 51.05$ with targets at 52.50$ next 53.45$ in extension.
Alternatively, Bearish scenario: Short positions below the daily pivot point 51.05$ with targets at 50.10$ next 48.65$ in extension.
Crude Oil - Daily Chart Support and Resistance levels from STOCK.com
Resistance: 55.00, 60.00
Support: 47.80, 44.55, 45.00, 43.60, 43.20
MT4 Chart: Oil
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