Oil is forming a “hammer” setup on daily candlesticks, if confirmed is evidence of a bullish reversal and suggests the current downtrend has run out of steam, may indicate there is more upside to come.
- Oil printed at a trend low of $43.76 earlier, lowest intraday level since Nov. 15, before bouncing back, and is now up on day
- See chart here
- Oil had fallen as much as 11.3% this week following EIA data that showed a continued expansion of U.S. crude production
- U.S. output rose for an 11th week through April 28 for longest run of gains since 2012, EIA data showed Wednesday
- While OPEC is likely to prolong curbs for further 6 months, U.S. shale supply remains a concern, Nigeria’s oil minister said
- Stoxx 600 oil and gas index is down 4.5% ytd
- The biggest SXEP decliners ytd are: Saipem -26.5%, Tullow Oil -25.7%, Wood Group -15.4%