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Crude-oil

Crude Oil potential shortCrude oil is looking double sided, potential drop or bounce of support. Next week will be interested how it will pan out. Will support hold up? Will oil dump? The one day uptrend has been broken since the last high has been broken through and so far a little down trend has formed and it looks like Friday could have been a pull back to continue the 5th wave of this down trend. Watch on Monday, sell if oil breaks through support. And buy if the potential upside forms, buy. If it begins to break through support, we sell with a stop loss at around 80 for a decent stop loss and around 80.6 for a looser one. The target is minimum of 78. If it starts bouncing off, we buy and set stop loss for around 79.1 (a lot of risk for bullish side) and target is 81 and higher if we continue to move the stop loss up. THIS IS NOT FINANCIAL ADVICE JUST PRACTICE...
TVC:USOIL
by darzzzz
WTI OIL Rejection on the 4H MA50, sell if the 4H MA200 breaks.WTI Oil (USOIL) got emphatically rejected yesterday on the 4H MA50 (blue trend-line) and formed another Lower High on the emerging Channel Down. The price is now approaching the 4H MA200 (orange trend-line) on an additional sell signal as the 4H MACD just completed a Bearish Cross, the first since the one that started this correction at the top on August 10. As a result, we are waiting for this bearish continuation confirmation, and will sell after a 4H candle closing below the 4H MA200. Our target will by 76.00 (just above the 1D MA50 (red trend-line)). ------------------------------------------------------------------------------- ** Please LIKE 👍, FOLLOW ✅, SHARE 🙌 and COMMENT ✍ if you enjoy this idea! Also share your ideas and charts in the comments section below! ** ------------------------------------------------------------------------------- 💸💸💸💸💸💸 👇 👇 👇 👇 👇 👇
TVC:USOILShort
by TradingShot
1
WTI Light Sweet Crude Oil, 8/11/23For Friday, the 81.49 - 81.64 area can contain selling through the balance of the year, above which 86.15 remains a 2 - 3 week target, 102.96 attainable by the end of the year.   In the more immediate vicinity, 84.14 can contain session strength, while closing above 84.15 indicates 86.15 within several days, able to contain weekly buying pressures - once tested the market susceptible to falling back to 81.49 long-term support within 1 - 2 weeks.   A daily settlement above 86.15 indicates 92.93 - 93.53 over the following 3 - 5 weeks, where the market can top out on a monthly basis.   Downside Friday, closing below 81.49 indicates a good August high, 78.02 then expected by the end of next week, 70.85 attainable by the end of September.
NYMEX:CL1!
by SpecialeAnalysis
WTI Light Sweet Crude Oil, 8/10/23For Thursday, the 81.49 - 81.66 area can contain selling through the balance of the year, above which 86.28 remains a 2 - 3 week target, 102.96 attainable by the end of the year.   In the more immediate vicinity, 84.18 can contain session activity, above which 86.28 is attainable intraday and able to contain weekly buying pressures, once tested the market susceptible to falling back to 81.49 long-term support within 1 - 2 weeks.   A daily settlement above 86.28 indicates 92.93 - 93.53 over the following 3 - 5 weeks, where the market can top out on a monthly basis.   Downside Thursday, closing below 81.49 indicates a good August high, 77.86 then expected within 3 - 5 days, 70.77 by the end of September.
NYMEX:CL1!
by SpecialeAnalysis
WTI Light Sweet Crude Oil, 8/8/23For Tuesday, the 81.49 - 81.71 area can contain selling through the balance of the year, above which 86.54 remains a 2 - 3 week target, 102.96 attainable by the end of the year.   Upside Tuesday, 84.17 can contain session strength, while closing above 84.17 indicates 86.54 within several days, able to contain weekly buying pressures and the point to settle above for yielding 92.93 - 93.53 over the following 3 - 5 weeks, where the market can top out on a monthly basis.   Downside Tuesday, closing below 81.49 indicates a good August high, and quite possibly through the balance of the year, 75.49 then considered 1 - 2 week target, possibly yielding 62.14 by the end of the year.
NYMEX:CL1!
by SpecialeAnalysis
Cracking the Crack SpreadThe ‘crack spread’ is a term used in the oil industry that refers to the differential between the price of crude oil and the petroleum products extracted from it, such as gasoline and heating oil. The name comes from the process of 'cracking' crude oil in a refinery to produce these valuable products. The spread serves as a measure of refining margin, or profitability, for oil refineries. When the prices of petroleum products are high relative to the price of crude oil, the crack spread widens, and refining margins increase, making it profitable for refineries. Conversely, when the price of crude oil is high relative to the products, the crack spread narrows, and refining can become less profitable or even unprofitable. The crack spread is typically expressed in terms of the ratio between the input (crude oil) and the outputs (refined products). For example, a 3:2:1 crack spread assumes that three barrels of crude oil can produce two barrels of gasoline and one barrel of heating oil. In the futures market, the crack spread can be traded by buying crude oil futures and selling futures in its products, thus locking in the margin between input and output prices. This can serve as a form of hedging against price risk for those involved in the oil industry. This week, we will delve into various factors influencing the crack spread and evaluate their potential impact on the current spread; Geopolitical Concerns SPR Refill One of the key points mentioned when we last covered oil was the potential refills of the SPR which are still pending as an attempt to purchase up to 6 million barrels was abandoned at the last minute. As the drawdown in the SPR continues, it seems inevitable that the Biden administration will have to replenish the reserve, likely pushing oil prices higher due to increased demand. Russia Ukraine escalation The simmering tensions of the Russia-Ukraine conflict leave us wondering if the price of crude oil might escalate further. The ongoing conflict focuses on a key port in the Black Sea. Consequently, this could potentially impact up to 20% of oil exports from Russia. Although most major nations no longer rely on Russia for oil supply, some countries are still buying from Russia. This leads to the concern that such countries might have to turn to the open market to make up for their supply shortage one day. Seasonality Crack falls in the 2nd half of the year Seasonal trends indicate a pattern where the 3:2:1 crack spread declines in the second half of the year. This trend has persisted for 6 out of the past 10 years, with the average decline of 29%. Three of the remaining four years closed flat, with one year ending approximately 20% higher. Economic Growth Current economic growth weak but some soft landing expected The year-on-year GDPs for major economies are trailing their long-term averages, indicating still fragile economic growth as industries and consumers grapple with sticky inflation and high rates. Weak economic growth generally dampens the crack spread, as industries and consumers cut back on spending, reducing the demand for refined products. Currency Interplay Between Dollar, Crude, and Crack Spread The Inverse Dollar and Crude Oil has as long-standing positive correlation up until the Russian-Ukraine Crisis when both Crude Oil and the dollar move sharply higher. As this relationship now begins to normalize again, any weakness in the dollar could provide the fuel for Crude & the Crack Spread to rally again. The crack spread is also highly correlated with Crude Oil outright prices, hence any view on crude oil can also be expressed using the Crack Spread. The crack spread hit an all-time high in June 2022 amidst the Russia-Ukraine tensions. Currently, the spread trades at a higher range relative to the past two decades and seems to face some resistance at the previous all-time high in 2013. On a shorter timeframe, the crack spread appears to be breaking out of a symmetrical triangle to the upside, typically a signal of bullish continuation. With prices slightly dipping, this could present an enticing opportunity. On balance the impending risk of the geopolitical event breaking out as well as the structurally weakening dollar seems to outweigh the seasonality and economic weakness effect. To express our view on the 3:2:1 crack spread, we can set up a long position on the crack spread. This can be set up by buying 2 RBOB Gasoline Futures & 1 NY Harbor ULSD Futures and selling 3 Crude Oil Futures at the current level of 114.5, stop loss at 97 and take profit at 140. The calculation of the 3:2:1 crack spread should also be noted as: (2 * RBOB Gasoline Futures + 1 * NY Harbor ULSD Futures ) * 42 – (3 * Crude Oil Futures). The factor 42 is multiplied to the RBOB Gasoline Futures and NY Harbor ULSD Futures as the two are quoted in USD per gallon, this converts the price quotation in Barrel terms, which is the same as Crude Oil Futures. The charts above were generated using CME’s Real-Time data available on TradingView. Inspirante Trading Solutions is subscribed to both TradingView Premium and CME Real-time Market Data which allows us to identify trading set-ups in real-time and express our market opinions. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com Disclaimer: The contents in this Idea are intended for information purpose only and do not constitute investment recommendation or advice. Nor are they used to promote any specific products or services. They serve as an integral part of a case study to demonstrate fundamental concepts in risk management under given market scenarios. A full version of the disclaimer is available in our profile description. Reference: www.eia.gov www.cmegroup.com www.cmegroup.com www.cmegroup.com www.cmegroup.com
NYMEX:RB1!Long
by inspirante
2
WTI Light Sweet Crude Oil, 8/7/23For Monday, the 81.49 - 81.73 area can contain selling through the balance of the year, above which 86.67 remains a 2 - 3 week target, 102.96 attainable by the end of the year. Upside Monday, 84.17 can contain session strength, while closing above 84.17 indicates 86.67 within several days, able to contain weekly buying pressures and the point to settle above for yielding 92.93 - 93.53 over the following 3 - 5 weeks, where the market can top out on a monthly basis. Downside Monday, closing below 81.49 indicates a good August high, and quite possibly through the balance of the year, 75.49 then considered 1 - 2 week target, possibly yielding 62.14 by the end of the year.
NYMEX:CL1!
by SpecialeAnalysis
WTI Light Sweet Crude Oil, 8/4/23For Friday, the 80.50 - 81.61 long-term resistance area can contain buying through summer activity, below which 76.77 is likely by the end of next week, 62.14 attainable over the next 3-5 months. On the other hand, a weekly settlement today at or above 82.42 (1% above 81.61 – page 2) would set off a meaningful buy signal into later year, 87.27 then expected within 3-5 weeks, 103.33 within 3-5 months (p 2). Downside Friday, 78.97 can contain intraday weakness, while breaking/opening below 78.97 allows 76.77 intraday, able to contain selling into next week and the point to settle below for then indicating 70.40 over the next 2-3 weeks.
NYMEX:CL1!
by SpecialeAnalysis
WTI Light Sweet Crude Oil, 8/3/23For Thursday, the 80.65 - 81.61 long-term resistance area can contain buying through summer activity, below which 76.57 is likely within 1 - 2 weeks, 62.14 attainable over the next 3 - 5 months. On the other hand, closing today above 82.42 signals 84.44 within the week, while a weekly settlement tomorrow at or above 82.42 (1% above 81.61) would set off a buy signal into later year, 87.27 then expected within 3 - 5 weeks, 103.33 within 3 - 5 months. Downside Thursday, 78.56 can contain intraday weakness, while breaking/opening below 78.56 indicates 76.57 - 77.37 intraday, able to contain weekly selling pressures and the point to settle below for then indicating 70.40 over the next 2 - 3 weeks.
NYMEX:CL1!
by SpecialeAnalysis
WTI Light Sweet Crude Oil, 8/2/23For Wednesday, the 80.65 - 81.61 long-term resistance area can contain buying through summer activity, below which 76.48 is likely within 1 - 2 weeks, 62.14 attainable over the next 3 - 5 months.   On the other hand, closing today above 82.42 signals 84.44 within the week, while a weekly settlement Friday at or above 82.42 (1% above 81.61) would set off a buy signal into later year, 87.27 then expected within 3 - 5 weeks, 103.33 within 3 - 5 months.   Downside Wednesday, closing below 80.53 indicates a good weekly high, 76.48 - 76.97 then expected by the end of next week, able to contain weekly selling pressures when tested and a meaningful downside continuation point into later August.
NYMEX:CL1!
by SpecialeAnalysis
WTI Light Sweet Crude Oil, 8/1/23For Tuesday, the 80.65 - 81.61 long-term resistance area can contain buying through summer activity, below which 73.40 is likely by the end of August, 62.14 attainable over the next 3 - 5 months.   On the other hand, closing today above 82.42 signals 84.48 within the week, while a weekly settlement Friday at or above 82.42 (1% above 81.61) would set off a buy signal into later year, 87.27 then expected within 3 - 5 weeks, 103.33 over the following 3 - 5 months.   Downside Tuesday, 78.12 can contain session weakness, while closing below 78.12 indicates a good high through next week, 76.12 - 76.13 then expected over that time horizon, able to contain weekly selling pressures when tested and a meaningful downside continuation point into later August.
NYMEX:CL1!
by SpecialeAnalysis
WTI Light Sweet Crude Oil, 7/31/23A two-sided framework continues through summer between 62.14 long-term support, and 81.61 long-term resistance, both regions able to contain seasonal activity. Upside, 81.61 can contain buying into later year, once tested 62.14 attainable over the following 3 - 5 months, where the market can bottom out on a seasonal basis. On the other hand, a weekly settlement above 81.61 indicates a good low for the year, 87.27 then expected within 3 - 5 weeks, 103.33 considered a 3 - 5 month target able to contain buying well into next year. - For Monday, the 80.65 - 81.61 long-term resistance area remains can contain buying through summer activity, below which 73.40 is likely by the end of August, 62.14 attainable over the next 3 - 5 months. On the other hand, closing today above 81.61 allows 84.52 within the week, while a weekly settlement Friday at or above 82.42 (1% above 81.61) would set off a buy signal into later year, 87.27 then expected within 3 - 5 weeks, 103.33 over the following 3 - 5 months. Downside Monday, 78.12 can contain session weakness, while closing below 78.12 indicates a good high through next week, 74.83 - 75.41 then expected within 1 - 2 weeks, able to contain weekly selling pressures when tested and a meaningful downside continuation point into later August.
NYMEX:CL1!
by SpecialeAnalysis
WTI Light Sweet Crude Oil, 7/28/23For Friday, the 78.04 level can contain selling through the balance of the week, above which 80.65 - 81.73 long-term resistance remains a 3 - 5 day target able to contain buying through summer activity. A weekly settlement today at or above 82.55 (1% above 81.73) would set off a significant buy signal into later year, 103.70 then expected over the next 3 - 5 months. Downside Friday, closing below 78.04 indicates a good high through next week, 76.57 then expected within several days, 73.38 within 2 - 3 weeks, able to contain weekly selling pressures when tested and a meaningful downside continuation point into later August.
NYMEX:CL1!
by SpecialeAnalysis
WTI Light Sweet Crude Oil, 7/27/23For Thursday, the 77.96 level can contain selling through the balance of the week, above which 80.65 - 81.73 long-term resistance remains a 3 - 5 day target able to contain buying through summer activity. A weekly settlement above 81.73 would set off a significant buy signal into later year, 103.70 then expected over the following 3 - 5 months. Downside Thursday, closing below 77.96 indicates a good weekly high, 76.23 then expected within several days, 73.35 within 1 - 2 weeks, able to contain weekly selling pressures when tested and a meaningful downside continuation point into later August.
NYMEX:CL1!
by SpecialeAnalysis
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
1
WTI Light Sweet Crude Oil, 7/26/23For Wednesday, the 77.88 level can contain selling through the balance of the week, above which 80.65 - 81.73 long-term resistance remains a 3 - 5 day target able to contain buying through summer activity. A weekly settlement above 81.73 would set off a significant buy signal into later year, 103.70 then expected over the following 3 - 5 months. Downside Wednesday, closing below 77.88 indicates a good weekly high, 75.88 then expected within several days, 73.32 by the end of next week, able to contain weekly selling pressures when tested and a meaningful downside continuation point into later August.
NYMEX:CL1!
by SpecialeAnalysis
WTI Light Sweet Crude Oil, 7/25/23For Tuesday, the 77.79 level can contain selling into later week, above which 80.65 and 81.73 long-term resistance remains in 3 - 5 day target able to contain buying through summer activity. A weekly settlement above 81.73 would set off a significant buy signal into later year, 103.70 then expected over the following 3 - 5 months. Downside Tuesday, closing below 77.79 indicates a good weekly high, 75.34 then expected within several days, 73.30 by the end of next week, able to contain weekly selling pressures when tested and a meaningful downside continuation point into later August.
NYMEX:CL1!
by SpecialeAnalysis