The Price Chart Of Crude Oil Shows An "Ascending" Peak

The Price Chart Of Crude Oil Shows An "Ascending" Peak

 

Recently, oil prices hit their highest levels in 7 years. Despite this, we are witnessing a surprising increase in US inventories. Why is that?

Energy Market Updates

Crude oil retreated this morning in the pre-US trading session, after another volatile day on Thursday. It was followed by the weekly release of US inventory figures that surprised the market with an increase in stocks published by the Energy Information Administration (EIA). Meanwhile, market participants were expecting a drop close to 1 million barrels, which implies a slowdown in demand.

Crude Oil: A Surprising Increase in US Inventories - 1

This imbalance has led to soaring prices for petroleum products and distillates, which will add pressure on households and businesses already struggling with higher levels of inflation. Also, as I mentioned in more detail on Wednesday, there are also geopolitical tensions in various regions carrying some uncertainty, which is an additional turbine to propel oil prices.

Crude Oil: A Surprising Increase in US Inventories - 2

(Source: Investing.com)

Crude Oil: A Surprising Increase in US Inventories - 3

RBOB Gasoline (RBH22) Futures (March contract, daily chart)

Crude Oil: A Surprising Increase in US Inventories - 4

WTI Crude Oil (CLH22) Futures (March contract, daily chart)

Do you think that black gold will be worth three figures ($100) anytime soon? In the first quarter of 2022, maybe? Let us know in the comments.

That’s all folks for today. Have a nice weekend!

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Sebastien Bischeri
Oil & Gas Trading Strategist

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The information above represents analyses and opinions of Sebastien Bischeri, & Sunshine Profits' associates only. As such, it may prove wrong and be subject to change without notice. At the time of writing, we base our opinions and analyses on facts and data sourced from respective essays and their authors. Although formed on top of careful research and reputably accurate sources, Sebastien Bischeri and his associates cannot guarantee the reported data's accuracy and thoroughness. The opinions published above neither recommend nor offer any securities transaction. Mr. Bischeri is not a Registered Securities Advisor. By reading Sebastien Bischeri’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Sebastien Bischeri, Sunshine Profits' employees, affiliates as well as their family members may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

Sebastian Bischeri

Sebastian Bischeri

Sebastien Bischeri is a former Reserve Officer in the French Armed Forces (Navy), and began his career in computer science and engineering, prior to move into banking, finance, and trading. He has worked as a contractor with top banks, firms, government departments, MNCs, SMEs and start-ups over the past decade, where he’s gained extensive knowledge of commodities, economic intelligence, energy, financial markets, investments, risks, and strategy (both as a Trader and Analyst). In parallel, Mr. Bischeri never stopped learning: he holds an MSc in Oil & Gas Finance and Energy Economics from Dundee, Scotland, and a European Masters in Economic Intelligence (EI) from Versailles, France.