WTI prices have been erratic, even without a clear direction in the past few weeks.
WTI Oil has been moving sideways, gradually decreasing, since early July.
Forming an initial range from $65 to $70, then taking steps towards lower levels, August led another consolidation between $62 to $66.
With Russia announcing it is close to reduce its oil output due to the heavy (and successful) drone attacks, prices have began an impulsive move higher.
Moving towards the final months of the year, headlines still revolve around higher OPEC+ output but also a continuing Ukraine-Russia war (Trump said a few lines on this earlier), which notably shook up yearly flows throughout Ukraine’s efficacious attacks on Black gold, sold at a huge discount to sponsor the Russian aggression.
At one point, Russian refinery production was reduced by 1/5, as mentioned in a recent Reuters piece.
Despite this heavy supply, supplemental tariffs on russian oil buyers have formed consequent reversals at the recently reached quarterly lows.
Friday seemed to provide an initial spike with Trump’s latest tariff headlines (as highlighted in our previous Oil piece) but quickly followed up with a selloff going into the weekend.
This week, however, commodities are seeing a huge boost with LME Copper prices hitting new highs, Silver and Gold rallying yet again, and energy commodities seeing a heavy boost. The common denominator, the US Dollar, is getting ravaged, which helps this ongoing rally.
Trump’s Chief Economist Miran has been signed to join the FED as an intermediate member, right before the FOMC meeting began, which has contributed to further weakness in the USD (= FED Independence challenged), giving a further boost to US Oil prices.
Anyway, let’s have a close look at Oil charts and levels to see how the current flows are changing the previous narrative. Has a bottom been found for petrol?
