Despite the bear market in oil, Saudi Arabia is still showing the world they are still the go-to country when it comes to deciding winners and losers in the form of influencing supply and prices.
The world’s largest oil exporter is trying to protect its market share by keeping its production steady even as prices hit a four-year low. Energy producers in turmoil, such as Russia, Iran and Venezuela, stand to lose the most. U.S. shale drillers and to a smaller extent Kuwait may suffer and industrialized importing countries including Japan will get a boost from cheaper prices.
Falling below $80 for Light Crude Oil has been rejected by the market and a rebound towards $84.14 is not unlikely, seeing yesterday’s rebound from $81.60. Any more than expected surplus during Crude Oil Inventories announcement later today will see sub $80 levels again.
|Bearish||79.50||80.80||81.60||83.4||84.14||85.10||Break below 81.60||82.9||80|