Daily Oil Price Forecast for January 13, 2017
Oil Price Fundamental Analysis
Oil price rallied on Thursday and recaptured resistance which is now seen as short term support near the 10-day moving average at 52.88. Resistance is seen near the December highs at 55.44. News that Saudi Arabia cut more output that committed helped buoy the market. This comes despite a larger than expected build in U.S. inventory reported by the EIA on Wednesday. Support is seen near the January lows at 50.71.
Saudi Arabia as well as Kuwait appear to have reduced output by a level that is greater that what they had promised. The Saudi oil minister reported that production has decline below 10 million barrels per day for the first time in two years. Kuwait also announced that production than promised.
Oil Price Support and Resistance Forecast
Support 1: 52.35
Support 2: 52.03
Support 3: 51.50
Resistance 1: 53.41
Resistance 2: 53.73
Resistance 3: 54.26