US Crude Oil Soars To New Highs!
The $60 barrel target before Christmas seems a Meer dot on the horizon as the oil prices continue its bull trend having pushed past the $63 mark. As the market rises to its highest point since December 2014, the recent run has been supported by the continued extension of the OPEC - led production cuts and the US Crude oil Inventories has dropped for a consecutive 8th week in a row. On Wednesday we saw a further decline of -4.948M barrels less than the forecast amount.
In Addition, Opec is cutting there output be even more than originally forecast and the lowering the supply globally, this, in turn, could drive the prices of US Oil towards $65 region and above. It is a simple trend of supply and demand. The less of a certain product available and the higher in demand its gets, the higher the prices will rise.
Technicals suggested that the bull runs will continue to the next price point of $65 after breaking the triangular wedge formation and breaching the $60 resistance with no hesitation.
A continued rally saw price achieve 63.50 by Wednesday the 10th of January with no correction in sight.
We need to be aware “ what goes up, must come down”. With the OPEC nations limited to a certain quota reducing the global supply, the US make take advantage of no restraints and flood the market once again. I will be watching carefully as price continues to rise towards $65 for any form of market hesitation and be ready for a release of pressure around psychological price points in the market.