Demand for the U.S WTI Crude Oil is up, with the average export number increasing in 2017 to 900,000 per day. That number is continuing to climb higher as the US takes on all the OPEC countries. The US is aggressively taking on a larger part of the oil export pie which is giving less to OPEC countries. This good news for any country or region heavily depended on oil importing such as Asia. India has joined in and started buying oil from America just the other month. The prime minister of India negotiated with the US on his past visit for the US to supply close to 8 million barrels of WTI crude oil.
Most recently, we had Iraq’s Kurdish region reopen there pipelines after closing them to do to continuing conflict in the region. This pipeline is very important to OPEC which is the second biggest export producer in the region. This situation should be interesting to watch over the next few months considering the US has troops on both sides after working to reign in the terrorist group ISIS.
Crude Oil started the week by pushing higher, but this looks more like a late squeeze that should flip the market back to the down side this week. The FOMC meeting, which reports on Wednesday, will provide the volatility to hold oil and push it back down below $50 for a short period.
Dec ’17 Crude Oil Daily Chart