Home » Daily Oil Prices » Daily Oil Prices – WTI Oil Price Chart 22nd April 2009

Daily Oil Prices – WTI Oil Price Chart 22nd April 2009

WTI Oil Price Chart - Daily Crude Oil Prices 22nd April 2009

The positive correlation we have witnessed recently between the price of crude oil and the equity markets continued yesterday with daily oil prices declining in line with stock prices and then recovering in late trading as the Dow turned higher.   However, the rise in oil prices can only be described as marginal as the oil market is still deeply concerned with a deterioration in oil demand as the global economy continues to lurch into an ever deeper recession.  Later today the price of crude oil may  also come under pressure if the EIA stats continue to show an escalation in the stockpile.

From a technical perspective both the bulls and the bears could claim to be on the right side of the market as prices continue to lurch sideways, and the last 2 days of trading have created a striking pattern which is rarely seen in any candle chart for any market and indeed any time scale, with yesterday’s candle engulfed by that of Monday, and with the oil price now enveloped in the moving averages.  To say that this formation is unusual would be an understatement and it does suggest that there are unseen pressures in the energy complex which are currently influencing crude oil prices.  Given the current scenario I would once again urge extreme caution as this pattern is far from the norm and suggests that we could see extreme volatility at some point in the short term with oil prices moving extremely fast and possibly accompanied with whipsawing, making oil trading extremely difficult, if not impossible.

The short and medium term trends are sideways, the long term trend is bullish.

WTI:

Support:    $46.73 (yesterday’s low)                              Resistance: $51.11 (high of 14/04/09)

Support:    $45.53 (low of 20/04/09)                              Resistance: $49.98 (high of 31/03/09)

Support:    $44.99 (low of 09/03/09)                              Resistance: $49.32 (yesterday’s high)

OIL (BRENT):

Support:    $48.31 (yesterday’s low)                              Resistance: $53.59 (high of 08/04/09)

Support:    $47.47 (low of 31/03/09)                              Resistance: $51.92 (high of 20/04/09)

Support:    $47.26 (low of 01/04/09)                              Resistance: $50.63 (yesterday’s high)

DOE Stock estimates (change in millions of barrels)

Crude +2.5       Distillates -0.9     Gasoline -0.9   Refining Capacity 80%


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