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Brentoilanalysis

BRENT - Interesting sell zone!Hello everyone! The plan is still in effect; I've taken a second entry! - Here's my view on BRENT: - We have liquidity. - We have an interesting zone. - We have the optimal Fibonacci. - We have accumulation before/on the zone. - We are with the trend. Fundamentally, we'll continue to monitor the evolution of conflicts in the Middle East because they can significantly impact the price of oil in case of escalating tensions! Given that we have the largest oil producers there, having conflicts nearby is concerning! So, stay cautious. That's why I see BRENT drop in the zone and bumping! 🚀 If you liked it and want more, don't hesitate to subscribe and boost the post!
BLACKBULL:BRENTShort
by ex_rico
BRENT - Interesting sell zone!Hello everyone! The plan is still in effect; I've taken a second entry! - Here's my view on BRENT: - We have liquidity. - We have an interesting zone. - We have the optimal Fibonacci. - We have accumulation before/on the zone. - We are with the trend. Fundamentally, we'll continue to monitor the evolution of conflicts in the Middle East because they can significantly impact the price of oil in case of escalating tensions! Given that we have the largest oil producers there, having conflicts nearby is concerning! So, stay cautious. That's why I see BRENT drop in the zone and bumping! 🚀 If you liked it and want more, don't hesitate to subscribe and boost the post!
BLACKBULL:BRENTShort
by ex_rico
Brent - W1\D1Brent W1 - The price may form a potential 3-wave structure, which, if wave 1 is broken, will mean continued upward movement to the values of 95.90 D1 - You can observe the formation of a triangular structure with a breakout of the upper trend line. Globally, the levels that the price can reach are 92.04 What can you expect? You can consider entering from the current levels of ~79.21 or wait for the price to fix behind the trend line and then consider entering. Cancel if the price breaks the minimum - 75.34, if you are considering the entry from W1 and the formation of a 3-wave structure, the stop can be set at the minimum of the 1st wave at 72.00 Long Target 81.41 - 82.78 - 85.51 - 87.98 - 92.04
TVC:UKOILLong
by Trade_Hive_Signals
Weekly Price Prediction: $78.00 (Min) and $87.50 (Max)Projected Price Range The anticipated weekly price range for Brent Crude Oil is expected to fluctuate between $75.62 (Min) and $81.93 (Max). Contended Price Levels $81.00 - $78.00 High Volume Node - potential support $81.73 Resistance Line - potential resistance $75.62 Support Line - potential support Technical Analysis Fibonacci Retracement Breakout: The price has gone below the 0.5 Fibonacci level. This level is currently just a dollar above the blue resistance line. Volume Profile Analysis: High Volume Nodes (HVM): Bottom HVM: Signifying an area of good liquidity and a potential support region. The price has stalled in this area over the last few weeks. If the price breaks downwards it could carry on. MACD and Stochastic RSI: Stoch RSI (Bottom Indicator): It has crossed over at the bottom and now has just about crossed over at the top. Showing overbought pressure and a potential downturn. MACD (Top Indicator): This indicator has maintained just below the negative region and has refused to move out over the last few weeks. I don't see it going anywhere this week. I believe it will stay and we won't see a bullish signal this week from this indicator. Additional Factors Prior Resistance ( Top Blue Line): Just above the Bottom HVM, a blue line represents a prior resistance level. The blue line just crosses over the current price bar. Could be a potential resistance area as well. Prior Support (Bottom Blue Line): This represents a support level for the price. This may be crucial if broken as the HVM is just above it. The blue line just crosses over the current price bar. Could be a potential support area as well. Geopolitical Events: Given the volatile nature of the commodities market, traders are advised to stay vigilant regarding any geopolitical events in the upcoming week, as these events can significantly impact oil prices. Conclusion To conclude we see the price range being between $75.62 (Min) and $81.93 (Max). This is due to the price staying within the HVM and seeing support with also a support line just below the HVM. However, there is a resistance line just above the HVM as well. These two support and resistance lines make our price range for this week. The Stoch RSI is showing a bearish sentiment so this will be crucial to watch out for. Also, something else which is crucial to watch out for is the blue line that has already crossed the current price bar. This will form new support/resistance. The MACD is effectively null this week.
OANDA:BCOUSD
by BlackbearTrader
Brent - D1\H4Oil Brent D1 - The price has formed a triangular formation, which may mean that if it fixes beyond the lower line of the triangle border, the price may continue to fall further along the trend and further reduce the price to the levels of 70.19 When fixing behind the upper trend line, the price may reverse and begin to rise, since a 3-wave structure may already be formed for the targets; in this case, we will see the price of 89.21. H4 - For purchases, it is better to wait for fixation behind the trend line; you can also try to open at the current price with minimal risk per transaction from the lower border of the triangle. If there is a fixation, turn into sales. What to expect now? Waiting for the level of 82.07 to be broken/fixed and an upward movement towards the nearest targets of 89.21. When opening a position, it is best to exit the position from the level of 78.93 - 78.23, if this scenario does not materialize. When fixing behind the lower line 78.95 - 78.15, the idea is canceled when a 3-wave structure is formed in the opposite direction 89.95 - 82.87. Long Targets 83.01 - 84.31 - 86.68 - 89.21 Short Targets 76.47 - 75.24 - 72.63 - 70.19
TVC:UKOIL
by Trade_Hive_Signals
Brent Crude Oil🛢️Outlook: Navigating The Next Huge Move (4H)Brent Crude Oil Forecast 🛢️ TVC:UKOIL Just like we called it earlier, the price dropped from 82.00 to 79, hitting our Take Profit sweet spot. Now, even though the price popped above 81, it couldn't make higher high, and it's chilling below the 100-day moving average on the 4-hour chart. Looks like we might see it slide back from 81.50 - 82.00 to 80. If 80 can't hold its ground, we might be looking at a dip to the 77 zone. On the flip side, if it manages to break above 83, we could be in for a bullish ride. Quick heads up: Keep your eyes peeled for any surprise moves, especially with the OPEC meeting on November 30, 2023, and the ongoing tension between Palestine and Israel. Key Levels: Support lines: 79.00 & 76.00 Resistance lines: 83.00 & 84.64 Drop your thoughts in the comments below. Appreciate your take on this! Thanks! 🚀
TVC:UKOILShort
by InvestScale
Oil Brent - H4Oil Brent W1 - The formation of a 3-wave structure continues D1 - The price has reached 161 lvl. 3rd wave, which may mean further movement down to level 200 - 261 H4 - The price is in the correctional 4th wave, you can see the formation of an ascending channel. If the lower trend line is broken or fixed behind it, further sales to the levels of 75.4 can be considered You can also consider entering from the formation of a double top and further movement to the lower boundary and beyond. What to expect now? Expectation of breaking through the level of 82.20 and fixing the lower border from the level of 81.15. When opening a position, it is best to exit the position from the level of 83.60; if this scenario does not materialize and the price may return to the local range, wait for the lower border of the channel to be broken. Short Targets 80.00 - 79.16 - 78.43 - 76.87 - 75.41
TVC:UKOILShort
by Trade_Hive_Signals
UKOil Brent Technical Analysis And Trade IdeaIn this video, we embark on a comprehensive analysis of UKOil, with a specific focus on the prevalent bearish sentiment observed in the 1-month (1M) and 1-week (1W) timeframes. Notably, our charts reveal that Brent has approached a critical support level, a pivotal juncture. Throughout this presentation, we delve into the fundamental tenets of technical analysis, encompassing essential components such as evaluating the current market trend, price dynamics, market structure, and other indispensable aspects of technical analysis. As we progress through the video, we meticulously scrutinize a potential trading opportunity in Brent Oil. It is imperative to stress that the insights shared in this content are exclusively intended for educational purposes and should not be misconstrued as financial advice. Participating in the foreign exchange market trading carries a significant level of risk. Therefore, it is vital to prudently incorporate robust risk management strategies into your trading plan to navigate these challenges effectively.
TVC:UKOILShort
by fxtraderanthony
Oil Brent - W1Oil Brent W1 - The price has formed a 3-wave structure, which may indicate a trend reversal, and if this scenario is implemented, it will be possible to potentially see the price at the level of 66.30. Judging by geopolitical data, due to the rise in oil prices and the growth of the asset, there was a local movement. To confidently enter sales, it is better to wait for the level of breaking through the 1st wave of 83.30 to be fixed. What to expect now? Waiting for the breakout and fixation at the level of 83.30. When opening a position, it is best to exit the position from the level of 88.13, if this scenario does not materialize and the price may return locally to the range of 85 - 95 Complete cancellation of the script mark 93.83 Short Targets 81.18 - 76.73 - 72.80 - 66.30
TVC:UKOILShort
by Trade_Hive_Signals
Oil Brent - H4\D1Oil Brent The nearest target is at 96.00 in continuation of the 5th wave on D1 H4 - there was a fixation behind the correctional channel and a 3-wave structure may form, which may indicate continued movement up the trend. What to expect now? Expectation of breaking through the level - 89.25, locally the target is 91.40 - 94.88 When opening a position, it is best to exit the position from the level of 86.47 - 85.66, if this scenario does not materialize. Long Targets 89.98 - 91.40 - 92.75 - 94.88 - 96.00
TVC:UKOILLong
by Trade_Hive_Signals
Oil Brent - H4Oil Brent *Updating the idea and how to act* Long - ABC correction structure has come to an end - You can observe an impulse rebound after the fall, which can lead to further growth and the 5th wave on W1 The nearest target is at 95.90 This scenario is best used to exit the triangular formation on H4 when the level of 87.85 is broken - with the cancellation of this movement and without increasing risks if the breakout turns out to be false at the level of 85.09 Short - If the price does not continue to move upward, and this was a full-fledged reversal, in the continuation of the 5th wave on D1, the nearest targets will be at the level of 74.30 In this scenario, you can consider selling from the level of 85.09 - with the cancellation of this movement and without increasing risks if the breakout turns out to be false at the level of 87.85. What to expect now? Waiting for the breakout of the level for Long - 87.85, local target 95.90 - 98.10 When opening a position, it is best to exit the position from the level of 85.09, if this scenario does not materialize. Waiting for the breakout of the level for Short - 85.09, local target 77.77 - 74.30 When opening a position, it is best to exit the position from the level of 87.85, if this scenario does not materialize. Long Targets 90.17 - 92.49 - 94.63 - 98.10 Short Targets 82.28 - 79.30 - 77.77 - 74.30
TVC:UKOIL
by Trade_Hive_Signals
The increase in Brent Crude ⛽️Oil⛽️ prices due to the WAR🚀➕15%😔Unfortunately, in recent days, there has been a war between Israel and Palestine, and I hope that this war will end as soon as possible.🙏🙏🙏 🧐Now, how can the effect of this war show itself in the oil chart❗️❓ 💡At the same time, as geopolitical tensions increase throughout the Middle East , oil prices are likely to rise even more. Meanwhile, US Strategic Petroleum Reserves (SPR) are down to just 17 days , the lowest in history. This is almost half the historical average of 33 days dating back to 1990 . 💡In addition, OPEC this week reaffirmed its commitment to voluntarily cut production to a ceiling of more than 1.5 million barrels per day. 💡In the days when Russian crude oil exports are limited, and the world's largest oil producers are also at war. 😱There's never been a worse time to have an unloaded SPR than today. 📈In terms of technical analysis, Brent Crude Oil is moving near the bottom of the ascending channel , 🟡 Price Reversal Zone(PRZ) 🟡 and SMA(100) . 🔔I expect that starting next week, the trend of Brent Crude ⛽️Oil⛽️ will rise and at least reach the 🔴 Resistance zone($100.48_$95.80) 🔴 again( ➕15%) . ⛽️Brent Crude Oil⛽️Analyze (USDBRO), Daily time frame ⏰. Do not forget to put Stop loss for your positions (For every position you want to open). Please follow your strategy; this is just my Idea, and I will be glad to see your ideas in this post. Please do not forget the ✅' like '✅ button 🙏😊 & Share it with your friends; thanks, and Trade safe.
FX_IDC:USDBROLong
by pejman_zwin
24
Oil Brent - H4Oil Brent The ABC correction structure has come to an end - You can observe an impulse rebound after the fall, which could lead to further growth and the 5th wave on W1 The nearest target is at 95.90 What can you expect now? You can consider entering from current price levels, but reduce the risks. Or wait for the breakdown of the level of 88.90 When opening a position, it is best to exit the position from the level of 83.30, if this scenario does not materialize. You should be careful, since the first wave is impulsive and the correction to this wave may be stronger than it is now. Targets 92.40 - 94.50 - 95.90 - 97.90
TVC:UKOILLong
by Trade_Hive_Signals
BRENT OIL ( UK OIL ) LONG term Trade AnalysisHello Traders In This Chart UK OIL HOURLY Forex Forecast By Forex Planet today UKOIL analysis 👆 🟢This Chart includes_ (UKOIL market update) 🟢What is The Next Opportunity on UKOIL Market 🟢how to Enter to the Valid Entry With Assurance Profit This Video is For Trader's that Want to Improve Their Technical Analysis Skills and Their Trading By Understanding How To Analyze The Market Using Multiple Timeframes and Understanding The Bigger Picture on the Charts.
TVC:UKOILLong
by ForexPlanet20
SasanSeifi 💁‍♂️Brent 👉1D🔼 90 / 94 Hey there! 😊 On the daily chart, As you can see, the trend turned quite bullish after it broke past that pesky resistance at 78 and overcame the dynamic resistance too. Right now, it's hanging out around 86. Fingers crossed, if it stays above the 82 mark, we could see it making its way up to the 90.70 resistance level and even touching the long-term supply zone. If it keeps climbing, we'll want to keep an eye on how it interacts with those resistance spots. Let's see where it goes from here! 🚀 Just keep these scenarios in mind as you analyze the market. Remember, things can always change unexpectedly, so stay flexible in your trading approach.❗ Wishing you loads of success in your trading adventures, my friend!✌ ❎ (DYOR)...⚠️⚜️ Sure, if you have any more questions or need further clarification, feel free to ask. I'm here to help! And if you found my analysis helpful, I would appreciate it if you could show your support by liking and commenting. Thank you!🙌
BLACKBULL:BRENTLong
by SasanSeifi
Oil Brent - H4Oil Brent You can already see the formation of an ABC correction - if the price does not form a full-fledged three-wave structure and turns the trend downward. The nearest target is at 87.50 What can you expect now? You can consider entering from current price levels, but reduce the risks . When opening a position, it is best to exit the position from the level of 91.50, if this scenario does not materialize. You should be careful, as this is a correctional formation. Targets 89.15 - 88.20 - 87.50
TVC:UKOILShort
by Trade_Hive_Signals
BRENT OIL ( UK OIL ) LONG term Trade AnalysisHello Traders In This Chart UK OIL HOURLY Forex Forecast By Forex Planet today UKOIL analysis 👆 🟢This Chart includes_ (UKOIL market update) 🟢What is The Next Opportunity on UKOIL Market 🟢how to Enter to the Valid Entry With Assurance Profit This Video is For Trader's that Want to Improve Their Technical Analysis Skills and Their Trading By Understanding How To Analyze The Market Using Multiple Timeframes and Understanding The Bigger Picture on the Charts.
TVC:UKOILLong
by ForexPlanet20
Brent Crude OilBrent crude oil had quite the month in July, climbing from $74 per barrel all the way up to $85. This price jump came from Russia cutting back on exports to Saudi Arabia, trimming all their oil production. Still, I don't think the price is going to burst out of its range of $72 - $88 per barrel yet. What's interesting is the strengthening of "crack spreads" Now you may be wondering what "crack spread" is. It's basically the difference between the buying cost of crude oil and the selling price of the final products, such as gasoline and diesel. There has been a significant increase in the crack spread for RBOB gasoline due to a production mismatch with the total demand and exports. Although there was a decrease in demand in July, the low inventories of gasoline at a five-year low and diesel at a multi-decade rock-bottom level have helped maintain prices for refined products. Add to this mix a hike in jet fuel demand, mostly driven by China's international travel sector. There's more. Due to the hot summer heat reducing shipping capacity along the Rhine River, European refineries might need to cut back production. This could prompt the U.S. to ramp up the export of key industrial fuels. The Rhine River in Europe, vital for transporting fuel & goods, is running into some trouble. Water levels in a part of the river (Kaub chokepoint) are the lowest they've been in 30 years. That's not good because if the water's too low, the big boats (barges) can't get through. Low water levels halted the barges last summer & may happen again without adequate rainfall. This impacts the delivery of critical goods (heating oil fuel) Barges moving heating oil fuel from Rotterdam saw their cargo loads nearly cut in half from 2000 to 1200 tons within a week. Less water and harder access mean using barges is getting more expensive. So a river that's too dry for boats to pass through properly could cause many problems with getting goods around Europe & might even make things more expensive. The inflation battle isn't over in Europe. Now for those keeping an eye on inflation. As gasoline prices rise in tandem with crude oil, it inevitably drives up the price of pretty much everything. Diesel demand reflects the overall economy's well-being but has fluctuated throughout this year. If there continues to be poor economic data from the US, China, and the EU, we could very well be starring down the barrel of a recession (pun intended ). This is why limit the current price ceiling to the high $80s for crude oil. The strength of crude has reached the upper limit of our forecast range and is still within the range of $72 to $87. If it breaches $88, it may reach $95 and have a greater impact on refined products. However, concerns about a recession will likely keep a limit on the price for now. The long-term impact of refinery shutdowns over the past 3 years and the current state of inventories is worth noting. If a recession hits and refinery runs dip, rebuilding inventories will be a severe challenge unless demand drops off a cliff. There's a catch-22; central banks are trying to cause that drop by hiking interest rates. The downside is that these higher rates can deter drilling and exploration for new oil and gas, further compounding the problem down the line. This is a vicious cycle. Destroying your economy to tackle inflation is like cutting off your arm because a paper cut is not something I would recommend. I expect Brent will trade between $72 and $88 per barrel until Q4. After that, don't be surprised if it creeps close to the $90 mark. As outlined in my blog I published on August 5th 2023
BLACKBULL:BRENT
by RomanoRnr
1
Crude Oil Bearish Iran’s Growing Oil Production Boosting UpTechnical Analysis: WEEKLY BEAISH Daily Bearish 4H Bearish In the chart above I have highlightened the trend, the Bear and Bulltraps. We have falling Highs/falling Lows. A bullish pullback signs eveytime low volume and low volatility that is the evidence of bulltraps caused by oil companies(and big speculators) The oil companies have also their own trades who push the pices fo a short time to make profits and accumultae thie losses,caused by low oiil pices. Also thier investors demand higher pofits. I am short in Oil, aleady fom July of 2022, and sell everytime the picks of the bullish short tem trend. This means I increase my selling positions bigge and bigger.So trade with the trend. I avoid to buy oil, or go long, nor I ignore the weekly reports, as they are vey short tem and can changed the next moment, but eview the fundamentals on bigge picture. The maket will target 39USD. So I have mentioend 4 different scenaios and shown you their routes. 3 scenaio ae bearish with very high probability:Tend is bearish, Fundamentals ae bearish. The weak USD has less impact here, cuz it is not the only indiacto that moves the oil market. To become Bullish(Scenario 4(see the chat above!!!) Many things must happen: The ask for oil must incease damatically(OPEC production stop,world war,....)Even the impact or Russia Ukraine war was fo a short time. The fundamental trend is beaish,as no one is inteested in higher oil prices. Even producers avoid it, as higher oil ppices cuases higher costs. Indicators: I have my own indicators, and dont use the common indicators. So my Bulltrap/beatap detector is confriming that. In the chart above we see that long term and mid term Indicators are red(Beaish trend/Stong bearish trend) The shot tem Indicator is geen, meaning bulltap. If you compare the indicator values withe the chart prices, you will notice they produce best possible signals whe to get short of long. The same is true for daily chart, or lowe time frames. Several factors can influence the direction of oil prices: 1. Supply and Demand Dynamics: If global oil supply surpasses demand, it can put downward pressure on prices. Factors such as increased production from major oil-producing countries or a decrease in global demand due to economic slowdowns or shifts towards renewable energy sources can contribute to weaker oil prices. Conversely, supply disruptions, geopolitical tensions, or unexpected increases in global demand can drive prices higher. 2. Economic Conditions: Economic growth and global economic stability play a significant role in oil price movements. During periods of economic expansion, demand for oil tends to increase, potentially leading to higher prices. Conversely, economic downturns or recessions can reduce demand for oil and exert downward pressure on prices. 3. Geopolitical Events: Political conflicts, sanctions, or disruptions in major oil-producing regions can impact oil prices. Supply disruptions or threats to supply can lead to price increases, while the resolution of conflicts or increased production capacity can contribute to price decreases. 4. Energy Transition Efforts: As countries and industries increasingly focus on transitioning to cleaner and renewable energy sources, the demand for oil may be influenced. Efforts to reduce greenhouse gas emissions and promote renewable energy can potentially lead to lower long-term demand for oil and put downward pressure on prices. However, the pace and extent of the energy transition vary globally, making it challenging to predict its immediate impact on oil prices. It is crucial to consider that oil price movements are affected by complex and interrelated factors, and their future direction is challenging to forecast accurately. Market dynamics and unexpected events can cause significant price volatility, making it important for investors and stakeholders to closely monitor global developments and factors influencing the oil market. Oil tried many times to break the 2022 lows at 75,33 Fundamentally nealy eveything is speaking for weaker oil prices: 1. U.S. Oil, Gas Rigs See More Losses The total number of total active drilling rigs in the United States fell by 5 this week, after a 6-rig increase last week, according to new data from Baker Hughes published Friday. The total rig count fell to 675 this week—81 rigs below this time last year. The current count is 400 fewer rigs than the rig count at the beginning of 2019, prior to the pandemic. The number of oil rigs declined by 3 this week to 537, while the number of gas rigs fell by 2, to 133. Miscellaneous rigs stayed the same at 5. The rig count in the Permian Basin fell by 5—13 rigs below this same time last year. The rig count in the Eagle Ford fell by 1, and was down 10 rigs from this time last year. Primary Vision’s Frac Spread Count, an estimate of the number of crews completing unfinished wells (which is cheaper than drilling new wells), fell by 12 in the week ending July 7, to 260. The frac spread count is 25 behind where it was this time last year. Crude oil production levels in the United States slipped back to 12.3 million bpd in the week ending July 7, according to the latest weekly EIA estimates—a gain of 100,000 bpd from the beginning of the year.  U.S. production levels are now up 300,000 bpd versus a year ago. 2. U.S. Shale Challenges OPEC With Record Production In 2023 The EIA has forecast total U.S. output will hit 12.61M bbl/day in the current year, eclipsing the previous record of 12.32M bbl/day. Energy experts have generally been bearish about U.S. crude supply with many arguing it has already peaked. Rising costs as well as limited supplies of labor and equipment were some of the problems that were hamstringing efforts by U.S. shale to increase output. 3. Weaker US Dollar is bad for Oil Prices and Oil price will fall deeper. The reasons are: A weakening of the US dollar can have various effects on the production and prices of oil. Here are some conditions and reasons that may lead to such an outcome: 1. Currency Exchange Rates: A weaker US dollar relative to other currencies can make oil more expensive for countries that trade in dollars. This can lead to reduced demand for oil, which may result in lower production levels to match the reduced demand. 2. Import Costs: A weaker US dollar can increase the cost of importing oil for countries that rely heavily on oil imports. Higher import costs can create an incentive for these countries to reduce their oil consumption or seek alternative energy sources, which can affect oil production levels. 3. Inflation and Monetary Policy: Inflation can be influenced by the strength or weakness of a currency. When the US dollar weakens, it can lead to higher import prices, including the cost of imported oil. If inflation becomes a concern, central banks may respond by tightening monetary policy, which can have a cooling effect on the economy and potentially impact oil demand and prices. 4. Global Economic Conditions: A weakening US dollar can be a reflection of broader global economic conditions. If the global economy is experiencing a slowdown or recession, demand for oil may decrease, resulting in lower oil prices. In such a scenario, a weaker US dollar may be just one factor contributing to the overall decline in oil prices. It's important to note that the relationship between the US dollar, inflation, and oil prices is complex and influenced by multiple factors. Changes in oil prices can be influenced by geopolitical events, supply and demand dynamics, production decisions by major oil-producing countries, and other market forces. The interplay between currency exchange rates, inflation, and oil prices can vary depending on the specific circumstances and the broader global economic environment. The news states that the total number of active drilling rigs in the United States has decreased by 5, following a previous increase of 6 rigs. Here are some potential interpretations and examples of the impact of this news: 4. Production and Investment: The decline in the number of active drilling rigs suggests a slowdown in oil and gas production activity in the United States. Fewer rigs imply that energy companies are scaling back their exploration and drilling operations, which can lead to a reduction in production levels. This decline may indicate a cautious approach by companies in response to various factors such as lower oil prices, reduced demand, or economic uncertainties. 5. Employment and Economic Effects: The decrease in active rigs can have ripple effects on the economy. As drilling activity slows down, it may result in job losses in the oil and gas sector, as well as related industries that support drilling operations. Communities heavily reliant on the energy industry may experience reduced economic activity and lower income levels. 6. Regional Impact: The news also provides specific information about the decline in the rig count in certain regions. For example, the Permian Basin saw a decrease of 5 rigs compared to the same period last year, indicating a potential slowdown in oil and gas exploration in that area. Similarly, the Eagle Ford region experienced a decline of 1 rig, which may suggest reduced drilling activity in that particular location. These regional variations can have localized economic consequences, affecting employment, local businesses, and government revenues. 7. Market Implications: The decrease in the rig count can influence oil and gas prices in the market. If the reduction in drilling activity leads to lower production levels, it could contribute to a decrease in the global oil and gas supply. Depending on the balance of supply and demand, this may put upward pressure on prices. Overall, the decrease in the number of active drilling rigs suggests a potential slowdown in the US oil and gas industry. It can have implications for production levels, employment, regional economies, and market dynamics. However, it's important to consider that rig count fluctuations are influenced by various factors, and it is advisable to analyze longer-term trends and broader industry developments to gain a comprehensive understanding of the situation. Based on the provided news, here are some interpretations and examples of the impact: 8. Frac Spread Count: The decrease in the Frac Spread Count by 12 suggests a decline in the number of crews completing unfinished wells. This indicates a potential slowdown in the completion of wells, which could be attributed to various factors such as reduced investment, operational challenges, or market conditions. Completing unfinished wells is generally cheaper than drilling new wells, so a decrease in this count may indicate cost-cutting measures in response to economic factors. 9. Crude Oil Production Levels: The report indicates that crude oil production levels in the United States slipped to 12.3 million barrels per day (bpd) in the week ending July 7. This slight decline in production may be influenced by factors such as maintenance activities, operational issues, or natural production declines. However, it's worth noting that compared to the beginning of the year, there has been a gain of 100,000 bpd, and production levels are up by 300,000 bpd compared to a year ago. These figures indicate a gradual increase in production over time. 10. Oil Prices: The news provides information about the current trading prices of WTI and Brent benchmarks. WTI benchmark was trading down $1.27 (-1.65%) at $75.62 per barrel, while the Brent benchmark was trading down $1.26 (-1.55%) at $80.10 per barrel. Despite the daily decline, both benchmarks have seen an increase compared to the previous week, with WTI up nearly $3 per barrel and Brent up $2.50 per barrel. The fluctuation in oil prices can be influenced by various factors, including global supply and demand dynamics, geopolitical events, and market sentiment. In summary, the news suggests a potential slowdown in the completion of unfinished wells, a slight decline in crude oil production levels, and fluctuations in oil prices. These factors can be influenced by a range of economic, operational, and market-related considerations. It's important to monitor long-term trends and analyze broader industry developments to gain a comprehensive understanding of the situation. Clean Energy Funds: The US government has allocated $20 billion from the EPA's Greenhouse Gas Reduction Fund to facilitate clean energy projects. The funds will be awarded through two competitions: the National Clean Investment Fund (NCIF) competition and the Clean Communities Investment Accelerator (CCIA). These initiatives aim to support clean technology projects, promote financing options, and focus on low-income and disadvantaged communities. The move is part of the government's efforts to expand clean energy investment and reduce pollution nationwide. 11. Subsidy War: The news mentions a "subsidy war" between European countries and the United States, as the latter is becoming increasingly attractive to companies due to its generous planned subsidies. France has accused the United States of unfair competition and has introduced its own act, the Net Zero Industry Act, in an attempt to compete. 12. Iraq's Oil Production: Iraq's parliamentary oil and gas committee plans to increase the country's oil production to over five million barrels per day (bpd), with the potential to reach 13 million bpd. Iraq is considered one of the largest underdeveloped oil frontiers globally, with substantial proven reserves and the potential for even more undiscovered resources. However, endemic corruption has hindered growth in the oil industry, impacting Iraq's ability to maximize its oil production potential. 13. Corruption Challenges: Iraq's oil and gas industry has been plagued by endemic corruption, resulting in significant financial losses for the country. This corruption has deterred Western companies from investing heavily in Iraq, despite its vast oil reserves. The lack of infrastructure investments and the mismanagement of compensation payments have contributed to lower production levels than what could be achieved with the available reserves. Corruption in Iraq's oil sector has been a recurring concern highlighted by Transparency International and has hindered effective state-building and service delivery. 14. Western Companies' Withdrawal: Major Western oil companies, including BP, Shell, and ExxonMobil, have withdrawn or planned to reduce their involvement in Iraq's oil fields due to risks associated with corruption, security concerns, and inadequate legal structures. These companies have been cautious about operating in Iraq, as political changes and uncertainties can impact their operations and pose risks to their business interests. Overall, the news highlights the US government's commitment to clean energy investment, the challenges faced by Iraq in realizing its oil production potential due to corruption, and the withdrawal of Western companies from Iraq's oil sector. The underlying theme in both stories is the need for transparent governance, sound legal frameworks, and anti-corruption measures to create an environment conducive to sustainable energy development and attract long-term investments. 4,Potential Impact of Iran's Oil Production: Iran's monthly oil production is gradually increasing, posing a challenge to OPEC's control over the oil market. Although talks of a new nuclear deal leading to an influx of Iranian oil have created market instability, such a deal has not materialized. However, if sanctions are lifted and Iran's production potential is fully realized, it could conflict with OPEC's efforts to regulate the market and maintain high oil prices. The uncertainty surrounding Iran's oil production adds a mysterious element to the oil markets. 1. OPEC's Concerns: The possibility of Iran's oil returning to the market raises concerns for both traders and OPEC. OPEC has exempted Iran from production cuts for years due to sanctions. Iran's oil production figures, reported monthly by OPEC, may not be entirely accurate. The potential reentry of Iranian oil into the market could disrupt OPEC's influence and market control. Rising Investment in Offshore Exploration: Despite a focus on disciplined investment, major oil companies are increasing their investment in offshore exploration. They anticipate higher returns from large offshore projects compared to low-carbon energy investments. This shift in strategy is driven by the expectation of increased profitability and the need to ensure a secure supply of oil and gas. 1. Offshore Rig Demand: Deepwater rig utilization is on the rise, driving up rates as companies ramp up exploration activities. Demand for offshore rigs is expected to increase by another 20% from 2024-2025. The "Golden Triangle" regions of Latin America, North America, and Africa, along with parts of the Mediterranean, are expected to account for a significant portion of global floating rig demand. Clean Energy Funds: The US government has allocated $20 billion from the EPA's Greenhouse Gas Reduction Fund to facilitate clean energy projects. The funds will be awarded through two competitions: the National Clean Investment Fund (NCIF) competition and the Clean Communities Investment Accelerator (CCIA). These initiatives aim to support clean technology projects, promote financing options, and focus on low-income and disadvantaged communities. The move is part of the government's efforts to expand clean energy investment and reduce pollution nationwide. 1. Subsidy War: The news mentions a "subsidy war" between European countries and the United States, as the latter is becoming increasingly attractive to companies due to its generous planned subsidies. France has accused the United States of unfair competition and has introduced its own act, the Net Zero Industry Act, in an attempt to compete. 2. Iraq's Oil Production: Iraq's parliamentary oil and gas committee plans to increase the country's oil production to over five million barrels per day (bpd), with the potential to reach 13 million bpd. Iraq is considered one of the largest underdeveloped oil frontiers globally, with substantial proven reserves and the potential for even more undiscovered resources. However, endemic corruption has hindered growth in the oil industry, impacting Iraq's ability to maximize its oil production potential. 3. Corruption Challenges: Iraq's oil and gas industry has been plagued by endemic corruption, resulting in significant financial losses for the country. This corruption has deterred Western companies from investing heavily in Iraq, despite its vast oil reserves. The lack of infrastructure investments and the mismanagement of compensation payments have contributed to lower production levels than what could be achieved with the available reserves. Corruption in Iraq's oil sector has been a recurring concern highlighted by Transparency International and has hindered effective state-building and service delivery. 4. Western Companies' Withdrawal: Major Western oil companies, including BP, Shell, and ExxonMobil, have withdrawn or planned to reduce their involvement in Iraq's oil fields due to risks associated with corruption, security concerns, and inadequate legal structures. These companies have been cautious about operating in Iraq, as political changes and uncertainties can impact their operations and pose risks to their business interests. Overall, the news highlights the US government's commitment to clean energy investment, the challenges faced by Iraq in realizing its oil production potential due to corruption, and the withdrawal of Western companies from Iraq's oil sector. The underlying theme in both stories is the need for transparent governance, sound legal frameworks, and anti-corruption measures to create an environment conducive to sustainable energy development and attract long-term investments.
CAPITALCOM:OIL_CRUDEShort
by DaveBrascoFX
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