Last week pretty much went as expected. See also:
No major breakthrough outside the last drawn wedge. What we observed/heard last week:
-Strong dollar does put some pressure on oil price but not that much (see 3 of January).
-Despite a strong draw -7 million of the stock tanks the price did not responded that much (5th of January)
-Kuwait and Saudi released press releases stating they started cutting production, though Saudi accused Kurdish region of violating the export limit agreement.
I still think we are likely to see the 60 sooner than we will break down to say fifty ish but the longer we wait and the longer we stay inside the wedge (or pennant) (purple trend line and red dotted trend line) the more likely we can expect a break below. See also the OVX (crude oil volatility index), the index is quite consistent in marking possible high, given the very low reading figure we can at least say: we are very sensitive for any negative surprises.
We can probably expect a decision next week as we are moving closer and closer to the end of the wedge.
No major breakthrough outside the last drawn wedge. What we observed/heard last week:
-Strong dollar does put some pressure on oil price but not that much (see 3 of January).
-Despite a strong draw -7 million of the stock tanks the price did not responded that much (5th of January)
-Kuwait and Saudi released press releases stating they started cutting production, though Saudi accused Kurdish region of violating the export limit agreement.
I still think we are likely to see the 60 sooner than we will break down to say fifty ish but the longer we wait and the longer we stay inside the wedge (or pennant) (purple trend line and red dotted trend line) the more likely we can expect a break below. See also the OVX (crude oil volatility index), the index is quite consistent in marking possible high, given the very low reading figure we can at least say: we are very sensitive for any negative surprises.
We can probably expect a decision next week as we are moving closer and closer to the end of the wedge.