Author Topic: WTI Crude Oil  (Read 666 times)

Kaitsu

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Re: WTI Crude Oil
« Reply #15 on: October 21, 2019, 05:42:43 PM »
Emerson, do you only look at wti or do you also look at Brent?  I noticed today that Brent is testing 57.50 area again. Do you think it might break through or will it bounce again?

Hi Kim!

I generally only look at WTI. But, to be honest, I haven't really been watching it closely lately because it seems so stuck in a range.

The general global economic slowdown is keeping a tight lid on the upside whilst the downside is hitting production breakeven levels and also causing pain with the national budgets of many producer countries at these price levels.

The attached chart shows the kind of range we are drifting in and the lack of direction is shown by the convergence of major SMA's from weekly to 4-hour.

But a lack of a clear trend does not mean that there are not opportunities on shorter TFs, but it is tricky!

So I have put WTI on the shelf for a while. Sorry I can't be more specific right now about oil!
« Last Edit: November 01, 2019, 06:19:19 AM by Emerson »
Ships are safe in harbour - but that is not what ships are for......

Kim

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Re: WTI Crude Oil
« Reply #16 on: October 21, 2019, 06:11:52 PM »
Thank you for the reply  :)
I’ll keep watching this for a bit longer

Kaitsu

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Re: WTI Crude Oil
« Reply #17 on: October 21, 2019, 06:43:30 PM »
Thank you for the reply  :)
I’ll keep watching this for a bit longer

And I will try to follow it a bit closer  ;D
Ships are safe in harbour - but that is not what ships are for......

Kaitsu

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Re: WTI Crude Oil
« Reply #18 on: March 18, 2020, 06:56:34 PM »
Well if interest rates can go to zero.....why not oil as well:  ;D

Just look at this chart! No producer in the world makes a profit at these prices - and they can't have hedged out that far in the futures......
« Last Edit: March 18, 2020, 08:51:53 PM by Kaitsu »
Ships are safe in harbour - but that is not what ships are for......

Caesar

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Re: WTI Crude Oil
« Reply #19 on: March 18, 2020, 08:57:53 PM »
US shale companies closing would suit the Saudis and Russians but Trump is determined to keep them going at all costs.
Well just have to see who blinks first

Caesar

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Re: WTI Crude Oil
« Reply #20 on: April 05, 2020, 08:49:46 AM »
Oil bounced around a bit this week, rising after Pres Trump said he had persuaded the Saudis to cut oil production by up to 15m barrels per day.
This didn't last however, as the Saudis reported that they had only agreed to further talks, not cuts.
Russia then said that they weren't involved in any proposed talks at all.
« Last Edit: April 05, 2020, 08:39:46 PM by Caesar »

Caesar

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Re: WTI Crude Oil
« Reply #21 on: April 20, 2020, 10:10:46 PM »
WTI hit minus $37.63 today.
With May contracts due this week, traders sold off to close positions,  pushing WTI into negative territory for the first time.
The lack of storage space and falling demand amid coronavirus-related lockdowns makes it nearly impossible for actual physical barrels of crude oil to find buyers. However, the wide divergence seen between May and June contracts suggests that investors are pricing a rebound in the second half of the year.

Meanwhile, the barrel of Brent, which has already rolled to June contract, is down 7% on the day at $28.50 to confirm that the fall witnessed in WTI prices is reflecting the extreme conditions in the physical oil market.

eddieb

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Re: WTI Crude Oil
« Reply #22 on: April 23, 2020, 07:45:21 AM »
Received this email from one of my brokers today

"Given the recent unprecedented moves in the oil markets, we would like to make you aware of the potential implications on OANDA’s CFD price and your ability to trade it.
 We can confirm that in the scenario where the underlying futures contract price that we are pricing one of our CFDs from turns negative, OANDA`s price will not drop below the minimum price increment for that particular CFD product (for example $0.01 for WTICO). 
As OANDA's price approaches this minimum level, trading may be halted to prevent any trading activity, or set to reduce-only to prevent any new positions from being opened.
 Whilst we strive to provide as much advance notice as possible regarding changes in trading conditions, we want you to be aware that there may be the need for us to take future action to limit trading with little or no notice to you, including but not limited to increasing margin rates, setting to reduce-only, or halting prices.
 Lastly we would like to remind you to practice caution when taking positions in instruments that are exhibiting extreme volatility with unprecedented price action. "
Disclaimer. Posts are just my thoughts,  not recommendations.  Do your own due diligence before trading

Caesar

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Re: WTI Crude Oil
« Reply #23 on: April 24, 2020, 01:49:12 PM »
Despite Russia and Saudi Arabia agreeing to cut production,  oil producers have been in the unusual position of having to pay oil trading companies to take their product due to the glut and lack of storage.
Brent has been more resilient due to its spread across multiple grades of crude, giving sellers more markets. Notwithstanding,  Brent still fell below $20 to an 18 year low.

Caesar

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Re: WTI Crude Oil
« Reply #24 on: April 28, 2020, 09:56:10 AM »
After recovering slightly, WTI is back below $11 again this morning. Could it hit negative territory again?


Caesar

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Re: WTI Crude Oil
« Reply #25 on: May 12, 2020, 11:16:52 AM »
Oil is suffering because of a lack demand and projected lower than pre-Covid demand for possibly years to come.
Brent and WTI futures settled lower on Monday despite Saudi Arabia saying it will cut an additional 1m barrels per day from its output in June, which would take its total production cut from April levels to 4.8m bpd next month. Kuwait and the UAE joined in support with their own additional voluntary cuts, but without the demand there is little reason for prices to rise

Caesar

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Re: WTI Crude Oil
« Reply #26 on: May 22, 2020, 09:55:31 AM »
Having rallied Thursday to $35, crude oil (WTI Aug) slipped sharply overnight, breaking the trendline, as China’s NPC decided to scrap its GDP target for 2020. It suggested Beijing is not about to really stimulate infrastructure investment like it has in the past. Markets, particularly commodities, were looking for more.