Logo of Phnom Penh Post newspaper Phnom Penh Post - Crude oil price slips as US plans emergency stockpile release

Crude oil price slips as US plans emergency stockpile release

Content image - Phnom Penh Post
Analysis by G-Link analyst Cheng Daravuth.

Crude oil price slips as US plans emergency stockpile release

Crude oil price is likely to dip as the US is moving towards releasing 50 million barrels from its national strategic reserve.

The WTI crude reversed from its record high of $84.97 per barrel on November 10, to around $78 per barrel as of Wednesday. WTI on Tuesday fell to $75 per barrel – a record low since October 10.

Tuesday’s fall was linked to talks that the US, Japan and India would release crude reserves to tame prices despite the threat of faltering demand as Covid-19 cases flare up in Europe, CNBC reported on Tuesday.

“The United States is expected to announce a loan of crude oil from its emergency stockpile on Tuesday as part of a plan it hashed out with major Asian energy consumers to lower energy prices...,” said CNBC.

However, Oilprice.com on Tuesday: “Oil prices erased losses and jumped on Tuesday morning following the announcement from the US Administration that it would make available 50 million barrels of oil from the Strategic Petroleum Reserve (SPR) to lower said oil prices.

“The headline for the oil market on Tuesday morning was the announcement of US President Joe Biden that the Department of Energy would release 50 million barrels of oil from the SPR in a bid to lower high gasoline prices in a coordinated effort with other major oil-consuming nations.

“Despite the seemingly big number, 50 million barrels, the US release actually equals around two and a half days of American petroleum consumption, which was at 20.5 million barrels per day in the pre-pandemic 2019.”

For technical analysis, oil price is creating a short-term down trend and long-term uptrend. However, investors can see signals of reversing back to $65 per barrel based on strong support at $65 per barrel.

Moreover,other indicators such as Fibonacci and MACD are also indicating short-term reversing to $65 per barrel. Therefore, for this week’s trading recommendation, investors should consider selling crude oil at $78 per barrel, setting a take-profit function at $66 per barrel and a stop-loss at $86 per barrel.

Content image - Phnom Penh Post

MOST VIEWED

  • Prince Norodom Ranariddh passes away at 77

    Prince Norodom Ranariddh, the second son of the late King Father Norodom Sihanouk and former First Prime Minister of Cambodia, has passed away in France at the age of 77. “Samdech Krom Preah Norodom Ranariddh has passed away this morning in France just after 9am Paris-time,”

  • Cambodia purchases 4 million Molnupiravir tablets

    Cambodia has arranged for the purchase of four million US-made Molnupiravir pills – enough to treat 100,000 Covid-19 patients – even though the current rate of daily infections in Cambodia remains low. The medicine will be distributed to state hospitals, pharmacies and private clinics, according to the Samdech

  • Rise in planned flights lifts travel hopes

    Six airlines have applied to resume flights in December, while two others have put in for additional flights and routes, according to State Secretariat of Civil Aviation (SSCA) head Mao Havannall on November 29. These account for 43 new weekly domestic and international flights in December, up 16

  • Is Cambodia’s travel sector in for another cheerless holiday season?

    The travel and tourism sector was heaving back to life as borders started to reopen, promising a festive vibe for the holidays and New Year. But Omicron and other Covid-related issues are threatening to close the year on a bleak note ‘Seems [like] Covid-19 won’

  • Cambodia, Thailand to discuss border reopening

    Cambodian authorities from provinces along the Cambodia-Thailand border will meet with Thai counterparts to discuss reopening border checkpoints to facilitate travel, transfer of products and cross-border trade between the two countries. Banteay Meanchey provincial deputy governor Ly Sary said on November 22 that the provincial administration

  • Cambodia planning new border checkpoint at Thma Da

    Cambodia is looking into the possibility of opening a new Thma Da Border Checkpoint with Thailand to boost trade and tourism. The Ministry of Public Works and Transport said on December 4 that Minister of Public Works and Transport Sun Chanthol led a technical working group