Crude Oil: Blueprints 8.

29 дек. 2015 г.

It will be a very crucial period for Oil, as the U.S.A. will be able to export its own production of Oil as the U.S. Congress lifted the ban on Oil exports, about two weeks ago. Iran will be returning to the international Oil market, as an exporter of Oil, since the liftoff of the embargo on Iranian Oil will take effect starting January 2016. Moreover, The Saudi Government opted for adjusting its budget in order to cope with lower Oil prices, yesterday. Such a move shows a Saudi rigidity for KSA's Oil production output. It seems that the Oil market will be suffering from an oversupply issue this year, as none of the Oil Producing countries are ready to reduce their output, which will send Oil seeking lower prices.

The recent slide in Oil prices has dragged global benchmarks with it. Last week's bounce lifted those benchmarks. In fact, Oil companies represent:

• 6.52% of the INDEX:DJY0, 6.48% of the S&P500, 12.82% of the INDEX:FTSE, and about 10% of the CAC40.
  

Oil equities are showing strong signs of weaknesses as well :


A Head and Shoulders can be found on Chevron Corp.CVX, which is very correlated to Oil prices.



BP PLC. (LSE_EOD:BP_) is still in a bearish trend on the middle run. The chart shows how correlated the FTSE100 and Oil are. BP Plc. is a bit higher than its 5 year low.



Here we can see the tight relation between TOTAL S.A. (CHXEUR:FPP) and the French Benchmark. The impact of Oil on the French benchmark is very interesting, as TOTAL S.A. weighs more than 9% of the CAC40.

Oil is remains in a bearish trend on the long term, with 228/BBL as an objective. On the short run, Oil is bearish below 38.17, with 34.22 as an objective, and 35.99 as a primary objective.
A breakout of 38.17, will send Oil seeking 39.9. Nevertheless, a breakout of 34.22, will send it seeking multiyear lows, again.

The weekly Pivot Point 37.24. The weekly support levels are around 36.2 and 34.31. The weekly resistance levels are around 39.13 and 40.17.