Forex Books Talking

Despite the veritable flood of crude oil prices hitting global markets, crude prices continue to rise amid rising speculation that keyonshore inventories. global producers

any such agreement will be possible, potentially paving the way for OPEC members to further stray from a single policy, opting instead to put national interests ahead of economic rationality.

While prices have jumped to the highest levels since November on new forecasts that anticipate a rebalancing of the market my 2017, complacency amongst traders continues to grow as problematic fundamental conditions remain intact.

Although the world's largest oil-producing countries met this weekend in Doha, they failed to reach a deal to freeze output at Jan levels as Saudi deputy crown prince

Saudi deputy crown prince Mohammed bin Salman sustained earlier statement that Saudi Arabia would freeze the level of its oil production only if all other ways of the

production only if all other major producers (including Iran) did the same. Although Iran supported the freeze, the country didn't agree to cut production until it raises its output to around

cut production until it raises its output to around 4 million barrels per day (to the pre-sanctions levels). What does it mean for crude oil? In our opinion, such developments suggest a

our opinion, such developments suggest a renewed battle for crude market share, which would likely translate into lower values of the commodity in the coming days or even weeks

commodity in the coming days or even weeks. Will our interesting ratios confirm this scenario? Let's jump right into charts (chart courtesyofhttp://stockcharts.com) and find out.

After a 50 percent rally in oil prices between February and March, crude has retreated a bit as of late. The upcoming OPEC-Russia meeting in Doha looms over the markets,

but few expect the outcome to have any material impact on supply and demand. Global supply still exceeds demand, but there are solid signs that the overhang is finally starting to ease. Storage levels are high, but are expected to come down.

Light crude oil prices (WTI) has remained in a downward trend since mid-2014. With its fresh new low in Q1, 2016 and price resistance now building at $42.40, the outlook remains negative.

The U.S. dollar's impact continues to play out against the commodity. With the improving economic status of the U.S. coupled with a Fed agenda of gradual interest rate increases this year, the currency remains with a steady tailwind (Chart 1)

Crude Oil Price Meets Support / Commodities / Crude OilBy: Nadia_SimmonsTrading position (short-term; our opinion): No positions are justified from the risk/reward perspective.
On Tuesday, crude oil lost 2.06% ahead of the

American Petroleum Institute's weekly inventory report. Thanks to this drop, light crude closed another day under $39, but reached important support zone. Will it encourage oil bulls to act in the coming days?