Reseal on oil; BUY on crude oil
DRAWDOWN THEN REBOUND ON OIL
By Jahnae Braxton | Divine 3nergy
Crude Oil fell a little more than 400 pips yesterday. Oil opened the day just around $79 a barrel on 11/21. Falling below $80 a barrel for the first time since a month prior on October 22. Price has reached over $90 a barrel in the month of November on the 7th. The last time it reached above $90 a barrel was October 7, 2022. A double bottom began to form last month, which was indicating a sell. The double bottom completed formation yesterday, October 21, 2022. Afterword’s, it immediately wicked off that demand zone and skyrocketed. The bullish momentum push was caused due to Beijing announcing they are experiencing Covid deaths. They haven’t seen Covid deaths in a few months. They are going back to COVID lock down procedures. This is bringing supply fears into oil. What also caused the surge in oil prices were rumors stated Saudi Arabia was going to raise oil production. Saudi Arabia has reported that they will not increase oil production. Oil production will continue with its 2 million barrels a day decrease that was decided last month and to continue to the end of 2023.
OPEC plus meets on December 4 to decide oil production. This comes a day before the European Union ban on Russian imports is set to start. Along with a G-7 price Cap.
I am estimating oil to reach the price mart of $83-$85 this week into next week.
By Jahnae Braxton | Divine 3nergy
Crude Oil fell a little more than 400 pips yesterday. Oil opened the day just around $79 a barrel on 11/21. Falling below $80 a barrel for the first time since a month prior on October 22. Price has reached over $90 a barrel in the month of November on the 7th. The last time it reached above $90 a barrel was October 7, 2022. A double bottom began to form last month, which was indicating a sell. The double bottom completed formation yesterday, October 21, 2022. Afterword’s, it immediately wicked off that demand zone and skyrocketed. The bullish momentum push was caused due to Beijing announcing they are experiencing Covid deaths. They haven’t seen Covid deaths in a few months. They are going back to COVID lock down procedures. This is bringing supply fears into oil. What also caused the surge in oil prices were rumors stated Saudi Arabia was going to raise oil production. Saudi Arabia has reported that they will not increase oil production. Oil production will continue with its 2 million barrels a day decrease that was decided last month and to continue to the end of 2023.
OPEC plus meets on December 4 to decide oil production. This comes a day before the European Union ban on Russian imports is set to start. Along with a G-7 price Cap.
I am estimating oil to reach the price mart of $83-$85 this week into next week.
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