- Oil has rallied strongly this week on Syrian tensions
- Brent higher by more than 7% on the week
- Saudi Aramco reports highest profits in the corporate world
It’s been a great week for oil bulls with the price of crude surging higher as geopolitical tensions in the Middle East threaten to rise once more. Even a large build in the latest DOE inventory figures couldn’t stop the rally which has seen Brent Oil move to its highest level since 2014.
The market currently trades higher by more than 7% on the week and is on track for its largest weekly gains since last July. In moving decisively above 70.80 the market has negated a possible double top and the market could now be seen to be in a break out mode once more as long as it remains above this level (70.80).
Oil is on course for its largest weekly gain since last July. Source: xStation
In breaking above recent highs the market has overcome a significant resistance level and there is little by the way of swing resistance overhead. A monthly chart takes a long term approach to the market and from this perspective it appears that even though the market has rallied strongly over the past 10 months, it is still not that high relatively speaking.
From a long term perspective (monthly chart) the market remains relatively low despite recent gains. Source: xStation
One of the big themes in the oil market in the coming 18 months will be the Saudi Aramco IPO, with the kingdom planning on floating of their state-owned crude assets. For four decades the financial performance of Saudi Aramco has been one of the biggest secrets in global business. Now, with the company’s initial public offering looming, investors can get their first detailed insight into this cornerstone of the global economy. The size of the firm is clearly shown in its profits for the first half of 2017, which came in at $33.8B -well above second placed Apple.
Aramco’s profits in the first half of 2017 surpassed all of its peers in coming in at $33.8B. Source: Bloomberg
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