WTI remains under pressure, mainly driven by rising global yields. Looking at the chart of the state yield, we again see All Time High. If we have to get a clear idea I will say that from 2011 onwards, to this day, the yield is doubled. This happened after the US once again allowed US oil exports, which was a great opportunity for shale makers. At present, US mining equals 11m. barrels a day or slightly more than Saudi Arabia.
In addition, last week, Libya, as the largest producer in Africa, said it would open 4 of the closed port docks, which would significantly increase the country's exports.
Technical Analysis of WTI
The technical price is retained in the upside trend channel, receiving support from short-term horizons, boosted by 23.6% Fibonacci correction of the main trend. Considering the negative foundation, it is possible to observe short-term downward impulses targeting the basic diagonal. In addition, Sequential has a 9-point downside and forms an arrow, also below - a likely ending of the downward movement and the likelihood of a new one in the direction of the trend.
A breakthrough in the support zone will lead to more massive sales, and in this scenario, we will probably see a 200-year test. We are waiting for news about the major oil producers that will move both the oil price and the energy companies traded on the stock exchange.
Source: Bloomberg Pro Terminal
Graphic: Used with permission of Bloomberg Finance L.P.
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