
Brent crude futures is maintaining stability this Friday, with traders awaiting an OPEC+ meeting that might lead to further supply cuts. Brent crude was down 8 cents at $81.34 a barrel, following a 0.7% drop in the previous session.
2020-05-08 • Updated
Oil is trading higher for the second week. For how long?
The crude oil price is moving up due to many reasons. First of all, the market is hungry for risk because of optimistic US-China trade talks and reopening of economies all over the world. Also, the ease of lockdowns leads to more consumption and more demand. For example, gasoline consumption rose significantly in the USA. Moreover, factories are coming back to work and need more energy.
To everyone’s surprise, Saudi Arabia, the world’s largest oil exporter, set higher the oil price for June. The country claimed that its main interest is to bring back pre-crisis prices, stop competing for the market share and end the oil war.
Buyers, especially China, were quite disappointed by the Saudi pricing decision. The price was higher by $1.40 a barrel, while the $7.50 contraction had been expected. Now, the oil demand should rise strongly to support these high prices.
Some analysts have a genuine hope in the oil rebound, while there is still a massive glut on the market. According to Goldman Sachs, global oil demand is rapidly recovering and it may even surpass the supply by June. It’s hard to believe right now, but who knows.
Let’s look at the chart. The price is approaching the 25 mark after the recent low at 10.15. If it crosses the resistant line at 26.00, it may continue its rally to 29. The next resistant line is at 35. Support is at 20.00.
To trade WTI with FBS you need to choose WTI-20M in MT4.
Brent crude futures is maintaining stability this Friday, with traders awaiting an OPEC+ meeting that might lead to further supply cuts. Brent crude was down 8 cents at $81.34 a barrel, following a 0.7% drop in the previous session.
China has issued new oil product export quotas to allow oil companies to send surplus barrels overseas, particularly Sinopec, which has the highest volume among quota holders. While the exact quota volume remains undisclosed, oil companies are forecasted to export approximately 3.5 million metric tons of clean oil products in September, a 10% increase from August.
Thanks to the incredible advancements in horizontal drilling and fracking technology, the United States has experienced a mind-blowing shale revolution. They've become the heavyweight champion of crude oil production, leaving Saudi Arabia and Russia in the dust. They even turned the tables and became net exporters of refined petroleum products in 2011.
Bitcoin's price remains stagnant despite the Fed's slightly less hawkish tone. In contrast, Bitcoin has outperformed other assets, doubling in price from $16K to nearly $38K this year. Improved fundamentals, including the resolution of Binance concerns...
Hey folks, it’s a wrap to yet another month in the 2023 calendar, and I’m guessing you know what that means - time for another episode in the “What To Trade” series. For December, I will be mapping out trade more cautiously as the market volatility often drops
Gold prices, reaching the highest since May 5, are consolidating as traders await the US PCE Price Index, a key inflation indicator. The upcoming data could impact the Fed's policy, influencing the demand for the US Dollar and providing direction for gold. The Greenback sees some repositioning, recovering modestly ahead of the data risk.
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Don’t waste your time – keep track of how NFP affects the US dollar and profit!