Crude Oil recap for 05.10.2015
Crude has met again a strong support at 44.40 and the price made another "faint" moving a bit bellow on Friday. For Monday the price quickly recovered the initial losses an moved back again to 47.11 and the catalyst was the Saudi's Oil minister.
In short, Sadui's Oil minister - Naimi, said OPEC share of the oil market will increase with the slight comment:
- Drop in US oil drilling rigs deployed by shale producers won't stop economic producers prevailing
So the battle for Oil continues as OPEC's strategy of suppressing the shale industry in US is working and the countries in the Oil Cartel have no intention of neither lower their production quotas, the supply of the "black gold" and stepping down to the change in the industry landscape in the US. This helped Crude to move a bit from the side-ways and move up as mentioned to 47.11 again. If news like this continue to come out from the Oil Cartel or other supply catalyst occurs, the price may finally brake 47.11 and move to 48.58.