US oil exports reached a record last week at five million barrels a day, according to Energy Information Administration data…
Oil is back to pre-pandemic levels!
2021-02-09 • Updated
The global recovery increased the demand for crude oil and dragged the price to the pre-crisis levels. It was mainly caused by the vaccine rollout, which improved the overall market sentiment and gave hope to investors that the Covid-19 pandemic will come over soon. Besides, OPEC+ continues cutting oil production, helping to avoid the oversupply. Besides, expectations for extra Biden’s stimulus package added to hopes of a quicker global rebound and boosted oil prices.
Follow crude oil inventories on Wednesday at 17:30 MT time. The market forecast is the drop of 1 million barrels. If actual inventories are less than this forecast, crude oil will jump! Otherwise, oil will fall.
Oil prices have taken a break today after a long rally up. The RSI indicator went above the 70.00 mark, signaling the overbought area. Elsewhere, it has approached the upper trendline of the Bollinger Bands. Therefore, the short pullback to the downside is likely to happen soon, but it shouldn’t go lower the support of $52.00. On the flip side, the move above $60.00 will drive oil to the high of December 2019 at $65.00.
The current oil CFDs are WTI-21H and Brent-21J.
The past two years have seen the biggest swings in oil prices in 14 years, which have baffled markets, investors, and traders due to geopolitical tensions and the shift towards clean energy.
The oil prices rally and world central banks’ dovish monetary policy caused by the Covid-19 pandemic were the main reasons for current inflation growth…
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates?
Western countries are trying to find other options for oil and gas supplies after a 10th package of sanctions, which will put more pressure on Russian oil and decrease global oil supply. Italy, for example, is in talks with Libya.