Saudi Arabia, United Arab Emirates, Bahrain, Egypt are withdrawing all diplomatic staff and are halting flights to Qatar’s capital Doha as tensions impact oil. As the news broke, oil rallied but sold off after it realized that there is not an imminent threat to supply of shipments. Still with tensions this hot, its important to monitor the situation.
The Wall Street Journal reports that, "Qatar is the world’s largest exporter of Liquefied Natural Gas Ltd (OTC:LNGLF). In 2016 it shipped out around 77.2 million tons of the super-chilled gas, equivalent to about one-third of global supply, according to the International Gas Union. Most of Qatar’s gas is located in its massive offshore North Field: Only Russia and Iran have more proven gas reserves, according to BP's (LON:BP) Statistical Review of World Energy.
In the overnight electronic session July Crude Oil is currently trading at 4738, which is 28 points lower. The trading range has been 4842 to 4723.
Technically speaking crude oil had been captured by the bear. After closing below $48.2, we see in the weekly chart that crude oil might complete a downward continuation pattern at the level of $ 44.20. it closed below the 20-day moving average crossing at 48.20 had confirmed that a short-term top had been posted.
Stochastics and the RSI are neutral to bearish signaling that sideways to lower prices are possible near-term.
