Sumary of Crude Oil Forecast: Rally Stumbles on API Inventory Build, OPEC Report:
- However, OPEC did note a possible tailwind for oil prices due to rising natural gas prices.
- The energy crunch across Asia and Europe sent prices for the heating gas soaring this year.
- US prices are also higher, partially due to export demand from those energy crunches.
- UK natural gas prices are up nearly 300% for the year, although the meteoric rise appears to be taking a breather.
- That said, if natural gas prices continue to rise, it may likely drag oil prices higher alongside.
- A larger-than-expected build may see prices ease, which could ease demand for crude oil from energy producers.
- Crude Oil Technical ForecastPrices are hovering just above the psychologically imposing 80 handle.
- The 161.8% Fibonacci extension from the late July to August move capped upside action earlier this week.