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2 Oct 2013
Oil’s comeback after 3-month lows?
FXstreet.com (Chicago) – Oil’s attempting a comeback after dropping from the $109 zone last week to hit $102.04 a barrel in NYME, the lowest since July 3rd. Offered at $103.84, the oil contracts emerged from the $101 zone, still below the $104 level.
US shutdown
The US shutdown is bullish long-term for the crude market as permitting projects and approvals will be delayed, fueling high demand and less supply and pushing prices higher. In recent news releases, the EiA crude oil stocks change was 5.472M vs. past 2.635M.
New pipelines
Bill O’Grady, chief market strategist at Confluence stated “The completion of the Keystone pipeline portion is bullish for WTI but not for the globe” after TransCanada Corp. announced the completion of the Keystone pipeline by the end of the month.
Price action reveals a strong resistance around the $104 zone despite reversal. Stalling at $103.84/barrel, the contract follows a corrective price movement on weekly highs.
US shutdown
The US shutdown is bullish long-term for the crude market as permitting projects and approvals will be delayed, fueling high demand and less supply and pushing prices higher. In recent news releases, the EiA crude oil stocks change was 5.472M vs. past 2.635M.
New pipelines
Bill O’Grady, chief market strategist at Confluence stated “The completion of the Keystone pipeline portion is bullish for WTI but not for the globe” after TransCanada Corp. announced the completion of the Keystone pipeline by the end of the month.
Price action reveals a strong resistance around the $104 zone despite reversal. Stalling at $103.84/barrel, the contract follows a corrective price movement on weekly highs.