United States Oil (USO) warns the world against buying Venezuelan oil

United States Oil (USO) warns the world against buying Venezuelan oil

United States Oil (USO) warns the world against buying Venezuelan oil

US National Security Advisor John Bolton has warned countries and companies against buying crude oil from Venezuela, after the Latin American country said it wants to sell more oil to the fast-growing Indian market.

In a tweet with a Bloomberg article on Venezuelan-Indian oil relations attached, Bolton wrote: “Nations and firms that support Maduro’s theft of Venezuelan resources will not be forgotten. The United States will continue to use all of its powers to preserve the Venezuelan people’s azsets and we encourage all nations to work together to do the same.”

“We have a good relationship with India and we want to continue this relationship. The relationships with India will continue, the trade will continue and we will simply expand all the trade and relationship,” Indian outlet Business Today quoted the Venezuelan minister as saying on the sidelines of the Petrotech conference in India this week.

At the start of the Venezuelan political crisis last month, Indian media reported that the Asian country continues to be one of the main buyers of Venezuelan crude oil. Indian refiners keep buying more than 400,000 barRels per day (bpd) of oil from the troubled Latin American country, which is sitting on the world’s largest crude oil resources.

In separate Venezuela-and-sanctions-related news, Bulgarian security officials said on Wednesday that they had blocked several bank accounts in a local bank that have received millions of euros from Venezuela’s state oil firm PDVSA, on which the US slapped sweeping sanctions at the end of January.

Bulgaria’s security services and prosecutor’s office were tipped off by the US about those money transfers and have blocked transfers out of the bank accounts.

“We have established that there were money transfers from Venezuela, namely from the state oil company of Venezuela to these accounts,” Reuters quoted Bulgaria’s chief prosecutor Sotir Tsatsarov as telling reporters.

The security officials will be looking into those accounts before deciding whether to press charges on money laundering, the prosecutor noted.

Overall, the bias in prices is: Sideways.

Note: this chart shows extraordinary price action to the upside.

The projected upper bound is: 12.28.

The projected lower bound is: 10.71.

The projected closing price is: 11.49.

Candlesticks

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 29 white candles and 20 black candles for a net of 9 white candles.

Momentum Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 81.4197. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 8 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 58.40. 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 34 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 51. This is not a topping or bottoming area. The last signal was a buy 2 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 5 period(s) ago.

Rex Takasugi – TD Profile

UNTD ST OIL FUND closed up 0.140 at 11.480. Volume was 14% below average (neutral) and Bollinger Bands were 69% narrower than normal.

Open High Low Close Volume___
11.270 11.480 11.170 11.480 27,164,176

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 11.29 10.76 13.20
Volatility: 28 48 39
Volume: 20,534,918 30,488,170 25,178,242

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.

Summary

UNTD ST OIL FUND is currently 13.0% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 26 periods.

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