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Oil under pressure as Kuwait strike ends

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 20, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    Oil prices have come down by over 70 cents following news that Kuwait's oil strike is now over, according to Reuters news agency, citing a local newspaper, with employees' Union agreeing to resume work at 7AM Wednesday.

    Kuwait strike ends, Oil pressured

    While the end of the Kuwait strike may apply downward pressure to Oil prices, the reaction so far, at such an liquid time, has been quite tame, considering that talking heads were attributing part of the recent recovery in Crude as being driven by production constraints in Kuwait after the strike was announced. The loss of credibility by OPEC and non-OPEC members to agree on an Oil production freeze in Doha, after all the expectations being placed, is what may, in the mid-term, and barring any unexpected deal without the Saudis, be weighing in Oil the most, which should remain fundamentally a market with a heavy tone.

    Oil key levels for today

    Technically, the drop in Oil has re-tested the 41.70 area, where today's pivot line intersects. A break below this area may expose 41.50 ahead of 41.20 (yesterday's low), followed by 41.00. On the topside, 42.85/43.00 is the key area to break, with a bullish resolution exposing 43.50 and 44.00.
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