Logo of Phnom Penh Post newspaper Phnom Penh Post - Year-end energy needs may buoy oil price

Year-end energy needs may buoy oil price

Content image - Phnom Penh Post
Analysis by Independent Analyst Cheng Daravuth

Year-end energy needs may buoy oil price

There are telltale signs that crude oil prices could hold around the $80 per barrel level due to strong rising demand coupled with the OPEC+ meeting scheduled for November 4 that could further set the tone of the energy market.

Crude oil prices this week hovered between $80 and $85 per barrel.

Oil recorded the highest price since 2014 on October 26 – largely driven by a global supply shortage and strong demand in the US, the world’s biggest crude oil consumer, Reuters reported.

“Brent futures rose 41 cents, or 0.5 per cent, to settle at $86.40 a barrel, while US West Texas Intermediate (WTI) crude ended 89 cents, or 1.1 per cent, higher at $84.65.

“Those were the highest closes for both global benchmarks since October 2014,” Reuters said.

The London-based news agency quoted OANDA senior analyst Edward Moya as saying: “Crude prices still seemed poised to head higher, with some traders waiting for confirmation after both the EIA crude oil inventory shows demand for most products are headed in the right direction, while US production is stable and with OPEC+ sticking to their gradual 400,000bpd increase plan.”

Oilprice.com’s Tsvetana Paraskova on Tuesday said the demand for oil is on course to outweigh supply for the rest of the year, with some forecasting the price hitting three figures.

“Major investment banks and asset managers are already predicting $100 oil, especially if this winter turns out colder than usual,” she stated.

However, the price chart of crude is forming a signal of decline after creating a huge resistance level at $85 per barrel and a small resistance level at $84.50 per barrel, heading back to $80 per barrel.

For this week’s trading recommendation, investors should continue buying for the coming weeks, but if the price chart technically indicates a clearer picture to drop, it would be time to sell at $85 per barrel, setting the stop-loss function $91 per barrel and the take-profit at $75 per barrel.

Content image - Phnom Penh Post

MOST VIEWED

  • Massive stingrays may live in Mekong’s deep pools

    US scientists have suggested that unexplored deep pools in the Mekong River in an area of Stung Treng could potentially be home to significant populations of giant freshwater stingrays, one of the world’s largest freshwater fish species. This comes as a fisherman hooked a 180

  • PM takes time to meet, greet Cambodians living in the US

    After landing in the US ahead of the ASEAN-US Special Summit, Prime Minister Hun Sen was received by over 1,000 Cambodian-Americans including political analysts who welcomed him with greetings, fist bumps and selfies. Hun Sen also met with analyst Mak Hoeun, who had allegedly spoken ill

  • PM heads to Washington for ASEAN-US special summit

    Regional and international issues and how to bring the ASEAN-US partnership to another level will be discussed at length as Prime Minister Hun Sen and his ministers arrive in Washington, DC, for a special summit on May 12-13. During the trip, Hun Sen and ASEAN

  • National Assembly refutes EU resolution

    The National Assembly (NA) has hit back at a European Parliament resolution condemning the political and human rights situation in Cambodia, calling it another display of the Parliament’s “double standards”. Key points of the resolution include a warning that the Parliament could exclude the

  • Soaring global fuel prices: an opportunity for Cambodia?

    Cambodia is feeling the squeeze from the soaring global coal and oil prices. Electricity du Cambodge (EDC)would certainly be hurting from this reality, and most likely re-assessing its plans to add more coal power stations. EDC buys half of Cambodia’s electricity from plants

  • PM reflects on shoe throwing: Free speech or act of violence?

    Prime Minister Hun Sen on May 17 questioned whether a man who threw a shoe at him while he was in the US was exercising freedom of expression or if it was an act of hostility. Hun Sen was referring to an incident last week when