Oil Prices: outlook for week ahead – rising trend, but low on Monday open
By Content-mgr - on March 19, 2018Monday oil prices have shown some decrease since the last week booming. U.S. West Texas Intermediate (WTI) crude futures were at $62.02 a barrel at 0350 GMT, down 32 cents, or 0.5%, from their previous close. Brent crude Oil futures were at $65.85 per barrel, down 36 cents, or 0.5%.
Monday’s price falls in part reversed increases last Friday, which came on concerns over tensions in the Middle East.
On a simple supply versus demand basis, however, oil markets are facing the possibility of a renewed glut after being in a slight deficit for much of last year. The nearly 1.9% gain ahead of the weekend, helped perhaps by news of much stronger than expected US manufacturing output (1.2% vs. median estimates of 0.6%) ensured the second consecutive weekly advance and the fourth in the past five weeks. The weekly close above $62 and the technical indicators suggest near-term scope for another dollar (or more) advance. The highs from late February are found near $64, and this is the main technical obstacle for a run at the highs near $66 seen at the end of January.
U.S. drillers added four oil rigs in the week to March 16, bringing the total count to 800, the weekly Baker Hughes drilling report said on Friday. Surging U.S. production might hamper exponential growth in crude oil prices.
As for the previous weekly outlook – the previous week had some strong foot on oil markets – WTI crude rose 0.48%, while Brent gained 1.1%. Analysts and traders have warned that booming U.S. shale oil production could potentially derail OPEC’s effort to rein in a global supply glut and support prices, which is what essentially is happening, actually.
What is the week ahead outlook for oil prices?
Tuesday: The American Petroleum Institute, an industry group, is to publish its weekly report on U.S. oil supplies.
Wednesday: The U.S. EIA is to release weekly data on oil and gasoline stockpiles.
Thursday: The U.S. government will publish a weekly report on natural gas supplies in storage.
Friday: Baker Hughes will release weekly data on the U.S. oil rig count.
Sources:
https://www.investing.com/news/commodities-news/crude-oil-prices–weekly-outlook-march-19–23-1346971
https://www.investing.com/economic-calendar/
https://www.ft.com/topics/themes/Oil
https://www.ft.com/content/81211898-277d-11e8-b27e-cc62a39d57a0
https://www.ft.com/content/0a485e78-2914-11e8-b27e-cc62a39d57a0
https://www.ft.com/content/16b748f8-2974-11e8-b27e-cc62a39d57a0
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