Oil Price - October 17

[dan_s]

This technical analysis shows that if WTI can close over $52, the next resistance is at $56: https://www.investing.com/analysis/oil- ... -200219231

The fundamental argument for $56 is that as U.S. refineries rebound from the damages done by Hurricane Harvey, the price of WTI should move much closer to the price Brent. Brent is trading for over $58/bbl today.

[dan_s]

Bloomberg: Rising tensions in Iraq are sustaining oil’s gains as the government of OPEC’s No. 2 producer clashes with the semi-autonomous Kurdish region. Crude rose 0.4% in London after adding 2.8% the previous two sessions. Fighting in Kirkuk has halted output from two deposits — the Avana and Bai Hassan — that pump a combined 275,000 b/d. While that’s small in the global market — it’s just 3% of what China bought last month — the prospect of continued disruption, together with signs of tighter supplies elsewhere, is helping to keep Brent near $58/b.

Bloomberg: Technical Analysis: WTI is inching closer to forming a key bullish technical pattern, with the benchmark’s 50-day moving average looking poised to cross above its 200-day moving average to create the so-called “golden cross.” The last time this happened was in May 2016, after which the price went up 18% in just one month.