Lets remember a few things that occur in ‘normal’ circumstances:
- Oil and gas exploration and production is driven by current oil prices, future prices and availability of resources.
- Higher oil prices also lead to large investments in upstream operations - lower leads to the opposite, drops in investment.
- This leads to fewer resources for these above future investments in exploration and production.
On the timeline, how long until recovery? Simply how long is a piece of string. The time scale depends on the revival of the global economy and how fast the surplus oil is consumed by the increasing demand. Obviously there’s a lot of room to the upside. And we won’t be touching on the world wide ‘arm wrestling tactics between countries’ but simply eyeballing the charts, squirting into the charts for an oil outlook:
Weekly open has seen two weeks of positive price action ( a given from the levels of zero) however good to see a rise rather than consolidation and a dribble to the right. Inner upward channel forming yet I’d like to see this week close positive before taking it into consideration. Still in a sentiment of course.
Adding to the outer perspective. Price needs to respect resistance. Stronger for a break and use above this point as support this will break the wick spoken about above.
Area of Interest
Considering this levels a break above the wick and resistance will place oil to battle the gap next week. At present testing the daily (inner upward). Watching for a respect or break, still in consolidation zone.
📈Support & Resistance📉*
1st Support Zone: 23.41
2nd Support Zone: 17.80
3rd Support Zone: 12.94
1st Resistance Zone: 28.71
2nd Resistance Zone: 37.62
3rd Resistance Zone: 42.11
Price Level Consideration
All Time High Half Way Point: 73.64
Prominent High: 65.53
Prominent Low: ZERO
🐃 Bulls Verse Bears 🐻
🐃 above: 77.04
🐻 below: at the moment
Monthly & Weekly Opens
Weekly Open: 26.05