Breaking Analysis on Crude Oil Markets from Rockwell Trading

September 01, 2017 – – Markus Heitkoetter gives breaking analysis on the movements of oil in the markets over the last eight months in Rockwell Trading’s new ground breaking, live series – Coffee with Markus.

Oil prices have been moving in both directions over the last eight months, dipping from nearly $60 a barrel at the beginning of the year to 52-weeks low $43 a barrel. U.S. oil prices are currently trading around $48 a barrel, thanks to a support provided by the volatility in Venezuela and the slowdown in U.S. rig counts. The dip in U.S. dollar exchange rate also added to the rally in oil prices.

Oil prices soared more than 44 cent on Friday after Baker Hughes reported a second straight decline in the U.S. oil rig counts. U.S. oil rig counts declined by 4 to 759. U.S. oil production always considered as a key factor in manipulating oil prices, as U.S. producers have the potential to add massive oil inflow in a short period of time.

The above discussion clearly suggests that day traders had enjoyed a lot of profits from oil price movement and one can easily make profits from these changes by having a strong eye on the global oil markets.

Following the latest dip in oil prices, U.S. producers now seems to reduce their production targets and future investments. Recently, the U.S. Energy Information Administration said it expects U.S. crude oil output in the next year to increase at lower rate than previous expectations.

EIA expects U.S. crude oil production to rise by 560,000 barrels per day to 9.91 million bpd, compared to recent guidance for the growth of 570,000 bpd to 9.9 million bpd.

At the same time, EIA increased their U.S. oil production outlook for this year by 500,000 bpd to 9.35 million, relative to the previous estimate for the growth of 460,000 bpd to 9.33 million bpd. On the other hand, the demand for oil has not been increasing at a faster rate than production growth. U.S. oil demand is set to increase by 340,000 bpd this year and 330,000 bpd in the next year.

Goldman Sachs said that the too large a price recovery will increase downside risk as shale production can ramp up rapidly. Markus Heitkoetter, the founder of Rockwell Trading, also expect oil prices to trade in the range of $45 to $50 a barrel in the coming months, which could create bundle of buying and profit making opportunities for day traders.

Those interested can get these insights on the market live at rockwelltrading.com/prcoffee.

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Contact Rockwell Trading:

Markus Heitkoetter
(512) 553-0835
support@rockwelltrading.com
5905 Rittenhouse Shore Dr.
Austin, Texas 78734

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