Tag: crude oil

What happened at the OPEC Meeting on December 4th 2015

What happened at the OPEC Meeting on December 4th 2015

Financial Markets Explained
The Organization of Petroleum Exporting Countries or OPEC met for its bi-annual meeting in Vienna, Austria on December 4th, 2015. The OPEC meeting was crucial and gained considerable headlines into the run up to the meeting as investors were keen to learn whether OPEC would come together to cut Oil production due to the supply glut which flushed the global economies with tremendous amounts of Oil and leading to a sharp decline in Oil prices. However, much to the disappointment of many, the December 4th OPEC meeting was a non-event as the committee could not agree on cutting production and thus left the OPEC Oil production unchanged at around 31 million barrels per day, keeping the markets well oversupplied with Crude Oil. Was there any expectation of a cut to Oil production at the OP...
Crude Oil Analysis – Aiming for $110

Crude Oil Analysis – Aiming for $110

Technical Analysis
WTI Crude has been caught in a range since March 2014 within the limits of 104 and 98. Within this huge consolidation level, Crude has been making higher highs but the level of 104.53 remains a strong resistance level with price unable to break higher. In the larger perspective, since late 2013, Crude Oil has been rallying and the consolidation paints an ascending triangle pattern which is indicative in this context to be a continuation pattern. The ascending triangle gives a target to 110, with interim levels coming in at 107 and the current resistance of 104.5. The upward path can be charted with the median line, where we notice price hugging the median line, which could point to a short term correction towards the lower median line. After softly breaking the previous high at 104.46,