Are oil prices reaching a peak?
WTI has been range trading for quite a bit in the past two weeks, between the $63 and the $65 levels - after breaking out of a trading wedge back in late December.
At current levels, it looks like resistance near $65 is where prices are stalling and buyers are finding it tough to break above for now. There are still lots of issues at play with oil, as we're only at the start of the year.
How will crude demand shape up as the months go by? At what point will US shale drillers start coming back into the market? Is the OPEC-Russia deal going to extend further beyond the year?
While prices have risen on the back of optimism, it's likely we're seeing a stall here as we await clarification on the issues above.
And that begs the question, is this where we see a peak in oil prices? Market positioning suggests some form of pullback at least, but if the mood during the second half of 2017 repeats itself this year then any correction is going to just be temporary.
