Want the full fundamental and technical Crude Oil forecast for the fourth quarter? Get it here!
- Crude price surge in September aligns with fundamental shift and turns forecast Bullish
- Global demand forecasts boosted by IEA, OPEC helping to favor rebalancing view
- Chart positioning favors upside bias hints at possible turning points and support
In the rearview mirror lies an impressive quarter for the price of Crude Oil. In September alone, Crude Oil price rose by nearly 9%, and much of the move higher was a combination of fundamental shifts from both the IEA and OPEC demand forecasts. The raised demand forecasts align with the production curb from all but two OPEC countries makes the argument that the diligent rebalancing effect is working.
In addition to rising demand and the reduced production from OPEC, traders can look to physical markets, which are encouraging. The rise of backwardation, where the front-month contracts trade at a premium to later deliveries signaling tighter supplies in encouraging for the market. Such a development is fundamentally bullish as it shows the time premium on getting access to the commodity sooner than later. In addition to the price of Crude Oil itself, backwardation tends to be a positive development for energy derivatives like energy-based shares.
If the backwardation structure continues into Q4, traders could expect to see Bullish price patterns play out like the one detailed by Jeremy Wagner,CEWA-M in the Q4 technical outlook for Oil. Later in Q3, Brent Oil traded close to $60/bbl, and further backwardation may push the price through $60 in Q4.
WTI Crude Oil (weekly chart)
We hope you enjoyed reading the above post. How about helping us share the information to your fans and friends on social media? Meanwhile, you can rely on us daily for the latest and relevant free forex trading signals, free forex trading market news, free forex trading technical levels, weekly Pool draws, latest news from Nigeria and the world, educational articles and quality academic information, insurance news and scientific knowledge.
Do you need a classical ORGANIST or an excellent music teacher? CALL Fabian on 08033983034 or email him at firstname.lastname@example.org
Follow us on twitter @newsbeatportal
Engage #SantexTech today to build & install inverters, training on inverters & other electronic designs, projects/kits. Call 08039574535
Click to join Talk Nigeria Today, a group where hot, controversial, and breathtaking issues are brainstormed upon.