2022/03/31 (025) Technical Analysis – UKOIL

Oil Prices Fell Sharply During Todays Trading Session On Thursday
After The Announced Release Of A Large Portion Of US Strategic Oil Reserves.
Oil Market Price Actions Falls Sharply After US Announces Release


Oil prices fell sharply on Thursday after the announced release of a large portion of US strategic oil reserves. A barrel (159 liters) of the North Sea Brent variety recently cost 108.21 US dollars. That was $5.24 less than the day before. The price of a barrel of West Texas Intermediate (WTI) fell $4.30 to $103.52. In the face of high gasoline prices as a result of the Russian war of aggression in Ukraine, the US government wants to sell massive amounts of crude oil from its strategic reserve in order to depress the market price. The government will release an average of one million barrels of crude oil every day for the next six months, the White House said on Thursday. It was the “largest release of oil reserves in history,” it said.At the same time, the government announced new measures to boost domestic oil production. “This record release will provide a historic supply level that will serve as a bridge through year-end until domestic production ramps up,” the White House said. The release from the oil reserve had been agreed with international partners, it said. The United States strategic oil reserve has a maximum capacity of 727 million barrels. Most recently, the USA announced in early March that it would release around 30 million barrels from the reserve in consultation with the International Energy Agency (IEA). In November, the government had already announced a release of 50 million barrels in view of the high inflation rate and higher petrol prices. Commodity expert Carsten Fritsch from Commerzbank believes that the “massive release of oil from strategic reserves” will mean that the oil market will no longer be undersupplied in the second quarter and will even be oversupplied in the third quarter. However, the state emergency reserves of the USA would drop very sharply, Fritsch pointed out. “The strategic oil reserves in the USA are already at a 20-year low at almost 570 million barrels.”

On Thursday, the producing countries in the Opec+ group again increased their planned production volume, as expected by the market. Production will be expanded by a further 432,000 barrels per day in May, as the association of around 20 countries announced on Thursday after an online ministerial conference. The oil cartel, which is dominated by Saudi Arabia and Russia, is maintaining the increase in production at the level of the past few months, despite the war in Ukraine.

Our Trading Capability Thus Took Off Faster Than Excepted

On Tuesday, the 15th February, in the 3rd Edition, of our DEVISE 2 DAY Affiliate Financial Market Online Newsletter, i formulated a trading capability in the UKOIL – incl. with an entry price (93 USD), target price (130 USD) and or stop price (84 USD). In this case, UKOIL reached our target price. Everything i wrote was and or everything i`m still writing is no an investment recommendations. But, in the truest sense of the word, a trading capability for self-deciders. All my readers decide for themselves whether to trade something or not – regardless of my opinion. Because my DEVISE 2 DAY Affiliate Financial Market Online Newsletter is 100% commercially with 100% the best of my knowledge and beliefs. I always encouraging you to get better informed – to stay even 100% informative. So that you can better decide for yourself (not) act – buy/sell whatever you want.

Oil Falls Sharply As US Announces Reserve Release

WTI crude futures dropped more than 6% to below $102 per barrel on Thursday, as the Biden administration announced the largest-ever strategic petroleum reserve release. The plan involves putting on the market 1 million barrels of oil per day for six months to lower the gasoline prices that have hit record levels following Russia’s invasion of Ukraine. The White House also asked US oil producers to increase output and said it would imposelevies on those that were not making use of their drilling licenses on public lands. Meanwhile, OPEC+ agreed to raise its output targets by 432,000 barrels per day from May 1, as expected.Use The Psychologically Important Price Action Area At 100 USD As A Trading Capability

Even though I formulated our current possibility at $112. I think it’s more profitable for traders and investors to go long than short. For now, I’m basically neutral on prices below $100. Because I then assume that the Urkaine conflict has been priced out for the time being. Although no financial market happened shortly before the outbreak of war, in February. So that we can assume, if we want to, that the rising oil price is mainly due to the fiscal policy of the left-liberal states in our so-called West. And on your verbal-political green agenda, which sends us taxpayers and consumers back to a green Soviet Union, green Yugoslavia, and or green GDR. In other words, in an (un)intentionally state-organized shortage economy. That`s why basicly above 100 USD rather long as neutral or short. And rather neutral under 100 USD…

100 USD not only useful as a stop mark for conservatives – much more as a short-term entry point for speculatives in the case of ongoing war

The outbreak of war is more than obvious in the chart so far. The daily candlestick candles are uptrend compared to the previous one – including the last uptrend from December (a, b & c wave) – more than twice as large on average.Concentrated analysis, only on the prices, since the outbreak of war, it remains to be said that we have had prices up to almost 140 USD so far. In the two weeks that followed, it then fell back to below USD 100. I can very well imagine that bulls and bears will fight several times over the USD 100 price mark in the coming days and weeks. Depending on whether the market, i.e. all traders and/or investors, perceive an end to the ongoing war.

Regardless of that, more or less USD 106, USD 114, and/or USD 124 are important support levels for bulls and resistance levels for bears. In order to preserve the upward trend above USD 100 in the medium term, bulls need prices above USD 120! Why? Because at prices above USD 120, the gap from the last candlestick to the previous high is closed in retrospect. And then even a medium-term W trend reversal formation could form. Which could then even generate a long-term buy signal at new high prices. Let’s hope not as consumers at the gas station! And stay self-determined voluntarily, with prices above 100 USD, just long – in this trading capability. And then also independently of my opinion, my comment, and or but also technical analysis.