Crude H4 Time Frame Analysis Market is moving in the Descending triangle pattern and the market has reached the lower high area of the Pattern.
Where Is Crude Oil Today
Ever since the crisis began in Europe between Russia and Ukraine, there has been major supply chain issues around the world. This past week was especially unstable due to the OPEC being unable to meet the production demands that was needed in the world.
Crude M30 Time Frame Analysis Market is moving in an Ascending channel and the Market has rebounded from the higher low area of the channel.
However, mid-week, Indonesia also slipped away from the oil supply as they banned the exportation of their crude palm oil. Following this ban, crude oil started showing bullish market conditions and shot up from 100 to over 107 in a matter of days. It even managed to reach heights in the 110 region which was a record-breaking high for this valuable commodity.
OPEC+ Misses Production Target
In light of the shortage in the world’s supply of oil or any form of non-renewable energy resource in general, the OPEC has decided to increase its oil production in order to make up for the shortages brought in by Russia. All 13 countries included in the OPEC have each begun more than doubling their production capacity. Of these 13 countries, Saudi Arabia and UAE have increased their production levels the most. Saudi managed to raise its production by 127,000 barrels per day. This brought this oil production per day to 10.346 million barrels. Despite most of the OPEC countries managing to increase their production capacity by quite a lot, they have still not met the production level target that was set up by the OPEC. In fact, they were not even close. The 13 countries in the OPEC had missed their production target by 2.7 million barrels per day. This target would’ve immensely helped resolve the tensions in the oil markets worldwide.
Tsvetana Paraskova, an Economist with a key focus on the oil markets has been following this story and reveals, “The top three OPEC producers, Saudi Arabia, Iraq, and the UAE, saw the highest increases in their respective oil production last month, while output in Libya plunged by 161,000 bpd to below 1 million bpd, at 913,000 bpd, according to OPEC’s secondary sources.
Crude H1 Time Frame Analysis Market is moving in an Ascending channel and the market has reached the higher high area of the Channel.
Libyan oilfields and terminals have again been under blockade in recent weeks amid protests, clashes, and disputes over the distribution of oil revenues in the country with two rival governments, with incumbent Prime Minister Abdul Hamid Dbeibah refusing to step down for newly sworn-in eastern Prime Minister Fathi Bashaga. Excluding Libya and the other two producers exempted from the OPEC+ deal, the ten OPEC members bound by the agreement saw their collective production at 24.464 million bpd in April, OPEC’s figures showed. This compares with a collective quota for OPEC-10 of 25.315 million bpd for last month.”
Kyiv Pipelines Takeover
Just a couple of days ago, it was revealed that Russia was unable to export its oil into the EU. And this had nothing to do with the fact that the EU didn’t want Russian oil. In fact, the EU was the one who placed the order. So where did the oil go? It turns out that Russia’s oil has to pass through Ukraine’s capital, Kyiv, to get to the rest of the world.
Crude Daily Time Frame Analysis Market is moving in the Symmetrical triangle pattern and the Market has reached the lower high area the Pattern.
This is because Kyiv is where the oil pipelines are located. But, Kyiv is currently being run by the Russian military. This has made it impossible to get to the oil and transport it to the rest of the world. Kyiv has come out stating that until they regain full control of their oil pipelines, they aren’t going to allow the oil to be exported to anywhere in the world.
Crude Weekly Time Frame Analysis Market is moving in an Ascending channel and the Market has consolidated at the higher high area of the Channel.
GTSOU is responsible for all oil and gas-related services in Ukraine. They have recently come out with a statement that reveals, “We won’t open. Until full control over the asset. We cannot operate at the Novopskov gas compressor station in the Russia-controlled Luhansk region in eastern Ukraine due to the interference of the occupying forces in the technical processes. There were unauthorized gas offtakes from the gas transit flows which endangered the stability and safety of the entire Ukrainian gas transportation system. A similar transfer of capacity from Sokhranivka to Sudzha took place from October 12 to 25, 2020, due to scheduled repairs. At that time, gas transit through the Sudzha entry point was 165.1 million cubic meters per day. Therefore, the allegations about the impossibility of transferring flows from Sokhranivka to Sudzha point do not correspond to reality.”
Indonesia Illegal Shipments
Just earlier this week, we found out about Indonesia’s ban on the exportation of their crude palm oil. Indonesia decided to be greedy and not share its oil supply with the rest of the world. They believed this was the only way to stabilize the economy and prevent a collapse. However, this decision has made them look weak in the eyes of the rest of the world who had been sharing their oil supply with each other despite barely having enough for themselves. As a result of this oil ban, several smugglers have emerged who had attempted to smuggle this precious commodity out of the country. They were probably hoping to sell it on the black market abroad and make a fortune. However, they had been caught and have been both jailed and fined a hefty amount. Though I must say, they probably weren’t the first and won’t be the last either.
Crude Monthly Time Frame Analysis Market has broken the Descending channel and the Market has Consolidated the Major Multi Year resistance area.
Economists at Reuters have been following this story and reveal, “Indonesia has impounded at least 81,000 liters of cooking oil bound for East Timor, the trade ministry said, as the Southeast Asian country seeks to enforce a ban on exports of crude palm oil and its derivatives including cooking oil. At least eight shipping containers holding cooking oil and other items were confiscated at Tanjung Perak port on April 28 in Surabaya on Java island after the ship deceived (authorities) by not listing cooking oil in the export declaration document. They were found guilty of breaching the cooking oil export ban and could face a maximum of five years of prison and a fine of up to 5 billion rupiahs ($341,997). Officials did not name the ship or the owner of the cargo.”