Fundamental Analysis
The bottom line is that OPEC is not going to hold any meeting before their own deadline unless we see a massive supply war between the Gulf producers. OPEC is out for blood and under no cost they are going to retreat. The biggest worry now is not the non OPEC members but the gulf producing countries and lights are already flashing that there is no respect for the quota system or any kind of limits. Every gulf member is fighting for their own market share and the biggest gainers are the Asian buyers for this situation who are getting lower and lower prices as these gulf members need more cash and they do not want to keep on eating their currency reserves.
The crude inventory data has shown once again that the refinery maintaince is heavily influencing the supply and we glut and glut of supply – not enough demand. The sharp sell off is a result of this.
Technical Analysis
Firmly trading below the downward trend line and still away from a meaningful support zone. The RSI and the MACD are showing some signs of oversold reaction.
Disclosure & Disclaimer: The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.
by Naeem Aslam