CL Archives - FaithMight

January 18, 2024January 18, 2024

Oil Price: The Attacks On The Red Sea Can Affect Global Oil Trade

The on-going war between Israel and Palestine has gone beyond land borders, as attacks are now carried out on the sea. A lot of shipping companies have temporarily stopped operations in order to reduced losses. Attacks by the Yemen’s Houthi rebels on ships in the area since November have impacted companies and alarmed major powers, in an escalation of Israel’s more than three-month war with Hamas militants in Gaza. The group says it is acting in solidarity with Palestinians.

About 12% of world shipping traffic transits the Suez Canal via the Red Sea. According to reports, vessels supplying liquefied natural gas (LNG) from Qatar are among the many ships forced to sail around Africa via the Cape of Good Hope. This diversion can add about nine days to the normally 18-day trip from Qatar to northwest Europe. The value of the items transported will be increased as a result of the diversion. This could eventually lead to higher inflation if the attacks are not curtailed.

The opening price of WTI Oil price in 2024 was $72.17. On the second trading day of the year, the price of oil fell to $69.33 per barrel making it the lowest price this year. A bounce has occurred as the current price of oil is at $72.87. Since the high in October at $94.78, the price of crude oil has been falling. We might be seeing scarcity of oil in some places across the world. The price of oil could further drop to $68.67 in the coming days but that could just be a precursor to a bounce that will eventually lead to the increase in the price of crude oil in the long run.

Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get oil in your portfolio? Schedule a meeting with us here.

April 14, 2023April 14, 2023

WTI Oil Price Reaches 2023 High

The opening price of WTI in 2023 was at $80.50. The price movement since the beginning of the year had been between $72 and $82 per barrel. Before this week’s rally to $83 per barrel, the highest price of crude oil had been $82.56 which was between January 18 and 23. A breakout to the downside was imminent which we wrote in our previous article. On the 14th of March, the price of crude oil reached a new 2023 low as a result of the downward breakout as price reached $64.

There was a price rally mid-March which made price reach the upper region of the Bollinger Bands. On the first trading day of April, there was a gap up in the price of Oil. The closing price on March 31st was $75, but as a result of the gap up, price was able to cross the psychological level of $80 on the first trading day of April 2023. We might see price reach a new psychological level at $90 in the coming weeks.

Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get commodities in your portfolio? Schedule a meeting with us here

January 10, 2023January 10, 2023

WTI Oil Price To Reach $100

Since both WTI and Brent Crude reached $130 in March 2022, the bears have continued to push price lower. At the end of 2022, price closed at $80.48, a little bit higher than the opening price of the year 2022 which was $75.67.

WTI Oil price opened in 2023 at $80.62. A consolidation that had begun in December which continued into the new year. Though RSI on the daily and weekly chart shows that price has been overbought, we might be seeing a price rally in the first quarter of 2023. Our analysts see the bulls pushing WTI Oil price to $100.

Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get commodities your portfolio? Schedule a meeting with us here

September 9, 2022September 9, 2022

Oil Price Falls Below $90

We published an article on the 27th of June, 2022 when the price of oil was above $100 per barrel, that the oil price will experience a bearish turn that will push price down into the two-digit zone. Ever since then, the bulls have failed to come up with a rally.

Currently, the market is basing due to the increase in energy prices in Europe which is slowing down the demand for oil products. Another reason why the market could be basing is due to the increased interest rates. Yet another reason for the market basing is the fear of a recession.

Since June, the monthly candlesticks for the oil price have closed bearish. The lowest price in August was $85 per barrel. Despite the price rallying to $90/barrel in the first few days of September, the bears have pushed price to an 8-month low of $81 per barrel.

In the aforementioned article, we forecasted a bearish turn that will push price to $62 per barrel. Currently, we are $19 away from that target. On the monthly chart, RSI indicates that price has been overbought. If governments of nations introduce higher interest rates in the coming days or weeks, we might be seeing the oil price finally fall to $62 within a short period of time.

Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get commodities indices in your portfolio? Schedule a meeting with us here

June 27, 2022June 29, 2022

Oil Price Loses Over $5 In A Day

In March 2022, price of WTI rose to $130.37 per barrel, making it the highest price of crude oil in 14 years. Ever since then, the year’s resistance was maintained at that level. The all-time high of crude oil price was reached at $147.40 per barrel in June 2008. During the global lockdown in April 2020, there was an historical price fall. The price of crude oil went as low as negative price, as WTI was at -$40. The price closed on the 20th of April 2020 at -$37.51, as there was little or no demand for crude oil globally. The next day after this historical fall, price was back to double-digits.

The most part of Q2 2022, shows price has been over $100 most of the time. Some analysts have concluded that world might see a recession soon. Commodity prices globally might fall if the recession becomes a reality. As investors have concerns about the likelihood of a recession, and the Biden administration is prepared to step up its fight against lofty pump prices by calling a tax holiday on gasoline. The WTI fell to 104.40 from $109.74. As it stands, the oil price is headed to the first monthly loss since November 2021. If this fall persists, the oil price might fall to $62.63 per barrel which was the December 2021 support level. On the daily chart, between January and February 2021, RSI showed at three different occasions where price of crude oil has been overbought.

Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get commodities in your portfolio? Schedule a meeting with us here

January 7, 2022January 7, 2022

Is the New Covid variant, IHU, a threat to WTI Oil price?

On the 18th of November 2021, our market analysts forecasted that WTI Oil prices will rise to hit $80 per barrel after the price fell temporarily in November. This forecast was dead-on! 2021 opened at $48.29 and the year closed at $75.12 which is approximately a 56% appreciation. It is probable that the continued rise of the Oil price is linked to the low impact of the previous variant, Omicron. Since the start of the new year, the oil price has continued its bullish movement and so far from the first week of trading, it has appreciated by 6% from $75.12 which was the year’s opening price.

As nations record increasing cases of the new Covid-19 variant, IHU, the oil market is bracing for a price dip even though OPEC signals confidence in the oil price. Some news outlets report that due to the new variant, there is uncertainty surrounding the demand for oil in the next couple of weeks. Since the ease of lockdown of 2021, the price of crude oil has maintained the support level at $61.63. According to our analysis, we forecast an oil price dip to $67.50 even though there are no indications yet. On the 4hr chart, the oil price is in the higher region of the Bollinger bands. Despite the price of crude oil is showing that it was overbought in December, the price is yet to reverse.

Some of these ideas are in our clients’ portfolios. To understand which ones can work for you or for help to invest for your own wealth, talk to our advisors at FM Capital Group. Would you like more information on Investment Advisory, Portfolio Services, and VC? Schedule a meeting with us here.

November 18, 2021November 18, 2021

WTI Oil Price Falls

The oil price reaches $85 on the 25th of October, this milestone was last reached in October 2014. Ever since the price fell in 2014, the price was not able to break the resistance at $77 until October 2021. It has been a good year for countries producing crude oil as price increases as resistance has been broken to the upside. The 2019 and 2020 resistance have been broken to the upside in 2021. As the advocacy has increased for the world to use green energy has increased over the years, this might pose a threat to the price of $CL. The sharp drop of the $CL price during the 2020 global lockdown took the price to $0 per barrel. The Oil price has generated about 80X for investors since the rally from the lockdown dip.

The current price of WTI crude oil price is $78.55. The price might increase after a fall to a six-week low at $77 this week. The breakout from the support level to the downside which occurred yesterday might be a fake-out. A rally might occur as we are moving towards the holiday season, the demand for crude oil products might increase. The price might reach $80 and beyond in the next weeks.

August 3, 2021August 3, 2021

WTI Oil Price Falls Below $70 Again

The WTI Oil Price has maintained its price above $70 since mid-June until the price crossed below $70, reaching $65.24 in July. There have been rising cases of Covid-19 in some countries, which has resulted in some countries going back to lockdown. The Delta Variant of Covid-19 has been reported to be spreading like wildfire.

$CL’s price peaked this year at $76.91. The last time price of crude oil reached $76.91 was October 2018. The global lockdown in 2020 made the price of Crude Oil fall to negative prices. Could it be that the increasing cases of Covid-19 across the world are responsible for the fall in the price of crude oil? Only time will tell, with some countries are re-entering another phase of lockdown.

Despite vaccines being administered, many countries are back to lockdown. Full-time jobs lost in 2020 were around 400 million. Many economies are yet to recover from the challenges faced during the lockdown. Palliatives were distributed to citizens in developed countries, while underdeveloped countries faced the reality of life as many people starved. The world cannot afford another lockdown and there might be an increased number of depressed people if another lockdown is introduced globally.

RSI shows 3 different cases where the price of crude oil has been overbought in June 2021. This could be a strong indication of a possible reversal to the strong support level of $57.82. However, this month of August has already started on a bearish note with two bearish daily candlesticks.

May 25, 2021May 25, 2021

CRUDE OIL PRICE IN A RANGE

Since the ease of lockdown across different nations, oil price has been on a bull run. Price reached the highest level at $68.05 in March 2021. The last time price reached this level was in October 2018, before the pandemic.

The pandemic caused the price of CL_F to fall to negative prices. There were expectations that the price would rise before the pandemic and we wrote an article on the expected rally in oil price. The article published in 2019, says price could reach $69 per barrel. Using the daily and weekly chart, it was expected, but the pandemic brought about a reversal in price. However, in March 2021, the price reached $68.05.

The opening price of Oil in 2021 was at $47.20. Oil price was able to appreciate by over 44% this year. Since the price reached the highest level of $68.05 in 3years, price has been in a range. This could mean that $CL_F is consolidating. There are key pointers indicating that this is as a result of increase in Covid-19 variants which poses fresh threats.

Further pointers show the current oil price being greatly affected by a new disease named –Black Fungus linked with Covid-19 patients. Since March 2021, the ranging price of Oil has been between $57.28 and $68.05. Though price has been retesting more of the resistance level at $68.05.

RSI at three instances show that price has been overbought since December 2020. A reversal in price might occur, which might bring the price to $57.70 in a few weeks or months. Despite price movement in the lower region of the Bollinger bands at two times in the last 3 months, price is back to the higher region in the daily time frame.