Looking at the chart of crude oil from today’s point of view, we can say that the first week of a new month and a new quarter was quite good for oil bulls. Although, we saw a drop below the August low and the 38.2% Fibonacci retracement level, the buyers didn’t give up and stopped further declines, which resulted in an increase to a weekly high of $104.38. In the previous week, light crude gained 0.87% and closed higher for a first time in four weeks. What impact did this growth have on light crude’s chart? What is the current technical picture for the oil market? Can oil climb higher in the nearest future? Would this result in higher levels of the oil stock index? Could they have any implications for gold? We invite you to check our Oil Investment Update. Have a nice read.

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Tensions in the Middle East have always had an impact on everyday life around the world through their effect on the price of oil. During the last month we saw this impact very clearly. At the beginning of September, the price of light crude dropped as fears of U.S. military action against Syria faded. In the following days, crude oil declined as Libya's production recovered to nearly 40% of pre-war capacity. Higher crude oil output in Iraq was an additional bearish factor, which pushed the price lower. In the previous week, investors watched closely all the US-Iran news. On Friday, the price of oil fell as tensions eased between the United States and Iran after the Obama-Rouhani talks.

What impact did these events have on the price of light crude?

Looking at the chart of crude oil from today’s point of view, we can conclude that September was a hard month for oil bulls. After the June-August rally, which resulted in a new 17-month high, the situation in the oil market deteriorated. The price of light crude dropped from the September high at $110.70 to a new monthly low at $102.20 per barrel. With this move, crude oil has lost nearly 5% so far this month and declined for a third straight week. 

What is the current technical picture for the oil market? Can oil climb higher in the nearest future once again or is the final top behind us? How does the relationship between light crude and the oil stocks look like? Could lower prices of crude oil have any implications for gold? We invite you to check our Oil Investment Update. Have a nice read.

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In spite of bullish EIA oil data, which showed that inventories hit their lowest level since March 2012, and an unexpected Fed’s statement, light crude lost more than 3% in the previous week. One-day rally on Wednesday was not enough to push the price of crude oil above $109 per barrel. In the following days, the combination of oil bulls’ weakness and news from the Middle East triggered a correction which took light crude below $105. What impact did the recent decline have on the crude oil’s chart? What is the current technical picture for the oil market? Can oil climb higher in the nearest future once again? Would this result in higher levels of the oil index? Could they have any implications for gold? We invite you to check our Oil Update. Have a nice read.

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In August crude prices surged on fears that unrest in Syria might spread to other parts of the Middle East, disrupting supplies. Then we saw a decline after Russia’s proposal raised the chance that a U.S. military strike would be delayed or averted. However, that was not the end of changes. Investors’ worries about whether diplomatic efforts would avert military action pushed the price of crude oil higher once again. Finally, the United States and Russia agreed to back a nine-month U.N. program to destroy Syrian chemical arsenal. Some investors could call it a roller-coaster. Looking at these events it is tempting to say that we have a relatively peaceful outcome so far: no war, no bombs, no oil disruptions. But is it good for price of crude oil?

Uncertainty around Syria was the major factor, which has driven the prices in the recent weeks. What will happen if Syria moves out of news? Investors will move their attention to other events. And what is the most important event of the week? Of course, the FOMC meeting. On Wednesday, we’ll know answers to questions that trouble investors for weeks. However, before this happen, we want introduce you to the current situation in light crude and oil stocks. We also examined the relationship between them and the short-term link between crude oil and gold. Has anything changed in these relations? We invite you to check today’s Oil Update.

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Looking at the daily chart of crude oil, we clearly see that significant changes occurred at the beginning and at the end of last week. In both cases the major factor which fueled the oil market was the uncertainty surrounding the Syrian conflict. On Friday, crude oil climbed above $110 per barrel and closed at its highest level since May 2011. It is oil’s largest weekly percentage gain since July 5. It is also the largest daily percentage gain since August 27. What impact did the recent growth have on the light crude’s chart? What is the current technical picture for the oil market? Can oil climb higher in the nearest future? Would this result in higher levels of the oil index? Could they have any implications for gold? We invite you to check our Oil Update. Have a nice read.

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