crude oil Archives - FaithMightFX

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.

October 26, 2023October 26, 2023

Crude Oil Price Could Fall In The Coming Weeks

Crude Oil is a major commodity in the world as it is used for production and logistics of good and services globally. The price of crude oil was at a high in 2022 at $130.75. Afterwards, price began to fall, and this fall continued until price reached $64 in May 2023. The $64 price level makes it a 2-year low.

The second half of this year seems to be good for the bulls as price rallied from the support level in May 2023 to $94 in September 2023. A resistance level has been formed at this $94 mark. On the daily, weekly and monthly charts, RSI has shown that price has been overbought. The bearish turn might push price lower and price might reach a new 2-year low. If the crude oil price falls below the $64 price level this quarter, then all gains for the year is lost. Chances are that this fall is a result of the ongoing wars. But we’ll find out eventually.

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.

September 5, 2023September 6, 2023

Crude Oil Price Reaches 2023 High

The year 2022 was not a good year for Oil investors as the downward slope that started in March 2022 continued to the end of the year. The highest price level of WTI crude oil in 2022 was at $130.75 per barrel. The last time price touched this price level was in July 2008, approximately 15years ago.

The downward slope continued in the first half of 2023. Price fell to $63.76, the lowest price since November 2021. The bulls in the second half of this year have managed to push price high from the support level of $63.75. A new 2023 high was reached last week as the WTI oil price hit $86.19, the highest price level in 10months. On the monthly chart, RSI has shown that price has been overbought but we foresee price still moving upwards. The current price of WTI crude oil is at $85.23. We see a rally to $87.65 in the coming days.

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

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

March 9, 2023March 9, 2023

Crude Oil Price Locked In Range

According to CNBC, the Russia-Ukraine war has remapped the world energy supplies, putting the United States at the top for years to come. This week new data from the U.S. government showed the U.S. exported a record 11.1 million barrels a day of oil and refined products. Not since the aftermath of World War II has the U.S. been so important as an energy exporter.

Since November 17, 2022 up until, the WTI price has been locked in a range between $70.10 and $83.10. A breakout might occur to the downside in the coming weeks as price could fall below $70. Since the beginning of 2021, RSI has indicated that price has been overbought five times on the weekly chart.

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

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

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.

April 20, 2020April 20, 2020

Crude Oil Markets CRASH HARD TODAY

When oil markets crashed to $26.05 in 2015, it was the first time in my career that I had ever seen crude oil that low. It didn’t take long for prices to rally and put in what looked like a bottom. But when price didn’t retake the $100-handle 2 years later, I drew the Fibonacci retracement levels to see that the rally was actually only a correction! So I drew the Fibonacci extension levels to see where price could actually target if prices continued lower. I NEVER THOUGHT it would reach that 123% level at $5.78. NEVER. EVER. Today, we are in Never Never Land everybody wow.

So can oil prices really go negative? Because at this rate, $0 is not looking like support. And the next target is -$28.41. What a time to be alive.

Once in a lifetime chance to see what we are witnessing today.
— ?ukasz Abgarowicz (@abgarman) April 20, 2020

[UPDATE, 4:24PM PST] Crude oil prices went negative hitting a low of -$40.32 and closed the trading day at -$37.63. UNBELIEVABLE!

If you are interested in learning how I found these levels, please check out the CHARTS101 or CHART201 course. Read the charts for your Self so you can trade what you see and not what I think.