SHORT USOIL WTIC Oil - Pullback downtrend ContinueZ

7 apr 2020

I still don't see any deal being done this week.
Overproduction + Surplus + world shut down + blaming game. At this point oil is not being traded for support and resistance but by a random tweet.

Major oil producers including Saudi Arabia and Russia are likely to agree to cut production at a Thursday meeting but only if the United States joins the effort, three OPEC+ sources told Reuters on Monday. (Reporting by Diane Bartz; Editing by Sandra Maler)

Obviously -The president said that OPEC had not approached him with such a suggestion but said that U.S. oil production had already fallen. “I think it’s happening automatically but nobody’s asked me that question yet so we’ll see what happens,” the president told a press briefing.

While the planet is quarantined, the production never stopped. Even if they agree to cut 10-15M barrels, it still wouldn't matter
U.S. - 13 million b/d (end-March)
Saudi Arabia - 12 million b/d (April)
Russia - 11.29 million b/d (March)
Brazil - 3.06 million barrels a day (February)
Norway - 2.07 million barrels a day (February)
Canada - 5.78 million barrels a day (February)
Iraq - 4.62 million barrels a day (March)
U.A.E. - 3 million barrels a day (March)
Kuwait - 2.67 million barrels a day (March)
Nigeria - 1.93 million barrels a day (March)

But then again, I could be dead wrong and the market might move the opposite based on a toilet tweet :). this is just for my information. Please do not use this as trading tool. I'm here to learn new ways to look at chart patterns.

Enjoy

7 apr 2020

Nota

While the talks still face significant obstacles, not least whether the U.S. will participate, the bigger question is whether any deal will be enough given the extent to which the virus is destroying demand. In another sign of the growing glut, industry data provider Genscape Inc. reported a 5.8 million-barrel rise in crude inventories at Cushing, Oklahoma, last week, which would be the largest in data going back to 2004 if confirmed by official figures due Wednesday.