Recently, both Brent and crude oil markets have hit more high notes than soprano songstress Lady Gaga at the recent 2012 Grammy Awards. On February 17, the energy market capped off a 4.7% five-day winning streak for its biggest weekly gain in an entire year.
As for why, a February 17 Bloomberg offers this explanation: "The headlines are what's driving this market."
"Driving" this market off the road into a craggy ditch, maybe. Fact is, financial headlines regarding oil make a sharp right one day -- only to turn the wheel 180-degrees to the left the next. On this, the following news items say plenty:
- "'Oil Falls On Greece Deal Doubt'... The latest hitches in negotiations on a Greek bailout package pressure oil." (Reuters)
-- VERSUS --
- "Oil Advances On Greece" (San Francisco Chronicle)
AND
- "A reduced oil demand forecast from the International Energy Agency (IEA)... also helped pressure oil." (Associated Press)
-- VERSUS --
- "Crude Oil Aims Higher On Improving Demand." (Inside Futures)
For some clarity into oil's upsurge, EWI's
Energy Specialty Service has strived to stay straight on the market's objective course. The rally in oil began in late January, and on January 24,
Energy Specialty Service posted the following subscriber insight:
"No Change. I'm looking for Brent to bottom out (109.23?) and ratchet on up in third-wave fashion. Trade above the 114.77 rebound high should be a good sign that the advance is underway."
For those new to our pages, "third waves" are the most powerful of all 13 known Elliott wave patterns. "They are strong and broad and the trend at this point is unmistakable."
And, it is this "third wave" -- NOT the latest slew of erratic headlines -- that has been "driving" the oil market up since January.
Whether the third wave is near its beginning or end -- EWI's
Energy Specialty Service has all the objective insight you could ask for.
EWI's intensive Energy Specialty Service brings you timely, actionable forecasts for crude oil, nat gas and other global energy markets. Editor and 30-year energy market veteran Steven Craig lives and breathes these markets all day, every day; let him show you what he knows.
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