close icon

Crude Oil Soared Before Russia-Saudi Arabia Cuts

The price of WTI crude oil plunged from $53.74 to as low as $43.73 between April 12th and May 5th. This 10-dollar sell-off surely made the bears feel almighty, but instead of accelerating to the south, oil prices bounced up to close the week at $46.46. Before the market open the next Monday, May 8th, we sent our clients their Elliott Wave analyses, which include several charts and plenty of explanations. One of the charts our crude oil subscribers received is shown below.(some marks have been removed for this article)
wti crude oil elliott wave chart
The sharp leap from $43.73 plus the wave structure of the preceding crash suggested the recovery was likely to continue towards the resistance area of $49 a barrel, at least. So we did not want to short crude oil right away, because the bulls seemed determined to lift the price higher. Eight days later, the price is hovering around $49.00, after reaching $49.63 yesterday.
crude oil updated elliott wave chart 16 may 2017
Mainstream media is using the production cuts agreement between Russia and Saudi Arabia, announced yesterday, as an explanation for the surge. The Elliott Wave principle, on the other hand, successfully prepared us for it a week ago. The question is, if oil soared before the cuts announcement, could it fall now, in anticipation of something else to happen?



Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

You may also like:

WTI Crude Oil Knocking on a Major High’s Door

Between January 25th and February 9th, WTI crude oil’s price plunged from $66.62 to $58.06 a barrel, losing 12.8% in just 12 trading days. What the bears did in just over two weeks, the bulls needed a month and a half to recover from. Finally, oil prices climbed to $66.52 earlier today, following last week’s…

Read More »

USDCAD and Crude Oil Abandon Negative Correlation

Between 2000 and 2016, USDCAD and crude oil had a negative correlation in 93% of the time. Canada is one of the world’s biggest oil producers and the largest oil supplier to the United States. So, when U.S. demand for oil rises, demand for Canadian dollars rises, as well, thus hurting the USDCAD exchange rate.…

Read More »

Crude Oil Finally Reaches the $60 Mark

As WTI crude oil approaches the $60 mark, we could conclude that it was not a smooth ride at all. The price has been wandering between $55 and $59 for nearly two months until it finally broke out of this range to reach levels not seen since late-June, 2015. A month ago the price surpassed…

Read More »

Ahead of WTI Crude Oil’s Two-Year High

The price of WTI crude oil surpassed the $58 a barrel mark this week. The last time it traded at that level was in June, 2015, when the oil crash was still in full swing. Almost two and a half years later, the bulls’ efforts are finally being rewarded. It has not been a smooth…

Read More »

Crude Oil Ignores Hurricane Nate and Slips

Here we go again. The last time hurricanes had something to do with crude oil, the price of the commodity, according to popular media, was rising because producers were bracing for Irma, whose record-breaking winds were going to severely disrupt production. That at least made sense at the time. Now, oil producers are preparing for…

Read More »

Crude Oil Finally Rewards Stubborn Bulls

If you were bullish on the price of crude oil, last week was nothing short of wonderful for you. The commodity opened the weekly trading session at $47.57 and after a small dip to the round number of $47, it climbed to as high as $50.47 a barrel, exceeding the previous major high of $50.40,…

Read More »

Crude Oil on the Path of the Hurricanes

As if Harvey was not enough, the United States now braces for Irma, which in turn is expected to be followed by Jose and Katia. Irma is considered to be the strongest hurricane ever to hit the shores of the U.S.. Its winds are blowing at speeds higher than 185 mp/h (300 km/h), enough to…

Read More »

More analyses