Crude Oil ahead of 2022

Crude Oil ahead of 2022

 

Omicron did a bit of a mess at the end of 2021, with oil too. Will crude oil break new price records in the New Year 2022? What do you guys reckon?

Market Updates

Yesterday, crude oil prices ended modestly higher after a volatile session with amplitudes increased by closing trades, as US crude inventories fell by 3.6 million barrels – more than expected – which is a positive sign for demand.

Crude Oil: Year-End With Continued Demand - 1

Commercial crude oil reserves in the United States fell more than expected last week, recording the third consecutive significant decline on the back of strong demand, according to figures released yesterday by the US Energy Information Agency (EIA).

On the other hand, the overall volatility is mainly due to the possible impact of the Omicron variant on demand; projects, commutations, as well as trips are cancelled, and more severe restrictions are put in place in Europe and China.

Crude Oil: Year-End With Continued Demand - 2

(Source: Investing.com)

The oil market continues to be tight due to the increased demand for heating oil to replace natural gas, which has become very expensive, especially in Europe; the Dutch TTF (Title Transfer Facility) benchmark dropped almost 8% to €89 there.

As you may know, one third of European gas supplies come from Russia. This explains why the energy market is also keeping an eye on the Russo-Western crisis around Ukraine. Russian gas exports could be affected if tensions rise, as Russian President Vladimir Putin is due to speak on the phone with his American counterpart Joe Biden later today. I bet they won’t talk about Russian caviar (which might also be considered Russia’s original black gold).

Crude Oil: Year-End With Continued Demand - 3

RBOB Gasoline (RBF22) Futures (Continuous contract, daily chart, logarithmic scale)

Crude Oil: Year-End With Continued Demand - 4

Henry Hub Natural Gas (NGF22) Futures (January contract, daily chart, logarithmic scale)

Crude Oil: Year-End With Continued Demand - 5

WTI Crude Oil (CLG22) Futures (February contract, daily chart, logarithmic scale)

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Thank you.

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.