Will we see oil sellers this week?
Oil prices have been supported higher after last weeks OPEC meeting kept production levels from rising. This has ensured oil has seen some bids. However, US oil has now moved higher into a key overhead resistance level. Furthermore, according to Bloomberg, Chinese storage facilities are nearly full. On top of this, the rising USD is a further headwind for US oil gains.
There is also a strong seasonal pattern for oil prices to fall in the coming days. There has been an annualised fall in oil prices of over 70% if you had sold oil every year between 09 March and 15 March.
There is the potential for more selling this week, so it is one instrument to watch out for.
- Any drop lower in US CPI data on Thursday will weaken the USD and provide relief for oil.
- Any surprise draw in inventory levels for oil will support prices.
- Any strong risk on tones will also support oil.