Crude oil prices drop as Texas output begins to recover after deep freeze Gold extended losses from December as it faces its lowest point since June Risk aversion may be picking up into the weekend, will momentum carry?
Crude oil prices weakened over the past 24 hours after WTI spent most of this month rallying over 18 percent. Some of the temporary fundamental forces driving up energy prices seem to be fading. Power is being slowly restored in parts of Texas following extreme cold climate, opening the door to oil wells being restarted and bringing some supply back into a market that is ripe with demand.
WTI crude oil continues to rally within channel formation May be in for a pullback/consolidation, using channel as guide Advertisement WTI crude oil remains in bullish channel
WTI crude oil is on the extended side, but remains within the confines of a well-defined channel structure that keeps it pointed higher. With that in mind, we may see a pullback develop here soon that will alleviate any short-term overbought conditions that exist, but the outlook is generally bullish.
A pullback to the lower trend-line could offer would-be longs an opportunity to enter and have a threshold from which to assess risk. Stay above the lower parallel and the current trend remains intact. Break below and a larger decline may ensue.
Crude Oil Slips as OPEC, IEA Cut Demand Outlook, Gold Eyes US Stimulus 2021-02-12 03:00:00 Daniel Moss, Analyst
Crude Oil, Gold, OPEC, IEA, Commodities Briefing – Talking Points:
Crude oil ends 8-day winning streak as IEA, OPEC cut demand outlook.
Gold slips on better-than-expected US jobless claims figures.
Stimulus progress will likely determine the short-term trajectory of both commodities. Advertisement
Crude oil ended its longest winning streak in two years overnight, after both the International Energy Agency (IEA) and Organization of the Petroleum Exporting Countries (OPEC) slashed their respective global demand outlooks. The IEA cut its forecast for oil consumption in 2021 by 200,00 barrels a day, stating that “renewed lockdowns, stringent mobility restrictions and a rather slow vaccine rollout in Europe have delayed the anticipated rebound”. OPEC also warned that global d