United States Oil (USO) U.S. will make major strides towards energy independence
The U.S. will make major strides towards energy independence in the next two years as oil production and exports hit new highs, according to the Department of Energy.
U.S. oil production, already at an all-time high this year, will increase by another 2 million barrels per day by 2020, the agency’s statistics bureau projects. The same year, the nation will start exporting more crude oil and fuel than it imports, the Energy Information Administration said in in its latest forecast.
American drillers pumped an average 10.9 million bpd in 2018, breaking the record going back to 1970. EIA sees U.S. output averaging 12.1 million bpd this year and 12.9 million bpd in 2020.
Most of the growth is coming from shale fields like the Permian, where frackers use advanced drilling methods known as hydraulic fracturing to free oil and natural gas from rock formations.
The surge in U.S. production is making the country less reliant on foreign oil. In 2018, net imports of oil and petroleum products fell from 3.8 million bpd to 2.4 million bpd. EIA forecasts net imports will dwindle to 1.1 million bpd next year and just 100,000 bpd in 2020. In the final three months of 2020, EIA thinks the U.S. will become a net exporter by about 900,000 bpd.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 11.90.
The projected lower bound is: 9.99.
The projected closing price is: 10.94.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 18 white candles and 31 black candles for a net of 13 black candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 62.2469. This is not an overbought or oversold reading. The last signal was a sell 1 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 55.72. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 13 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 91. This is not a topping or bottoming area. The last signal was a sell 1 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 10 period(s) ago.
Rex Takasugi – TD Profile
UNTD ST OIL FUND closed up 0.310 at 11.000. Volume was 20% below average (neutral) and Bollinger Bands were 3% narrower than normal.
Open High Low Close Volume___
10.850 11.040 10.850 11.000 23,915,856
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 10.55 11.08 13.43
Volatility: 38 56 39
Volume: 31,959,616 37,034,572 24,446,130
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
UNTD ST OIL FUND is currently 18.1% below its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of USO at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on USO and have had this outlook for the last 5 periods.