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.
Crude oil futures surged on Monday due to disruptions in Russian refining capacity caused by Ukrainian drone strikes and Moscow's decision to cut output to comply with OPEC+ targets. The West Texas Intermediate (WTI) contract for May settled at $81.95 a barrel, up $1.32, while the Brent contract for May settled at $86.57 a barrel, also up $1.32. Russia instructed...
Bearish scenario: Sales below 80.00 with TP1: 79.60... Anticipated bullish scenario: Intraday purchases above 80.70 with TP: 81.50...
Brent oil is currently on a bullish trend, facing resistance near $84 and supported by the 200-day EMA. Breaking above this level could lead to a climb towards $90. Short-term support is observed around $80, backed by the 50-day EMA. As summer approaches and travel increases, crude oil tends to benefit from seasonal patterns. Despite temporary setbacks, buying...
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
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