Crude Oil ~ Daily
This week I've been on Schwab Network and Bloomberg talking about the $92.00 pivot price in oil; this is the chart I was referring to. Friday's mid-$80s low matched the early-May low. As long as prices stay above $92.00, the bulls have an edge until we see the top of the trading range near $108. This switchback pattern will likely persist until ships begin moving through the Strait. However, Venezuela is slowly but surely coming online and could add an additional 300k to 500k barrels per day by 2027. OPEC has been increasing production quotas, and with the UAE leaving the cartel, there will be an incentive for others to follow. Those leaving are doing so because they want the freedom to produce more. Lastly, US oil rigs are trickling online; last week, 4 rigs were added, bringing the total to 429, and production is just under all-time highs. When the Strait finally opens, we expect a supply glut to push prices to pre-war levels, and potentially much lower. #oil #crudeoil #war #iranwar #iran #straitofhormuz #hormuz #energy