ONLINE FOREX BROKER
2021-08-06 • Updated
Since the beginning of the week, Brent lost 6%. It was caused by several factors, which are described in this article. Let’s discuss them and find out how will oil price move during upcoming OPEC-JMMC meetings!
Data out of China shows that factory activity growth declined in July, which is the first time in over a year. Also, 46 cities have been locked down in China due to the COVID-19 pandemic. This fact concerns investors as China, the largest oil consumer in the world, might reduce the demand as its economic growth slows.
The ISM Manufacturing index of national factory activity fell in July. Data released by Automatic Data Processing, the payroll company, revealed that although the private sector added 330,000 jobs in July, that is less than experts predicted (653000 jobs) and less than half the number of jobs added in June. Moreover, the Energy Information Administration reported that crude oil stockpiles increased last week, though gasoline inventories fell. Experts suggest that oil stockpiles increase was caused by export drop but not domestic demand.
In this case, traders should pay attention to export numbers, as falling export can signal worldwide demand decrease.
OPEC’s oil production hits the largest numbers since April 2020. In July 2021, the organization decided to increase output by 400000 barrels daily and plans to increase it monthly at the same number through April 2022. This could affect world supply as coronavirus lockdowns return.
4h Chart
At the moment, $67.5 is the main support level. Until Brent's price is higher than $67.5 uptrend is going to continue. The RSI and MACD show that the price is going to reverse soon and go up to $75.5. If Brent breaks this resistance, the next target will be $80.
Fundamentally, trend reversal could be caused by news from India. The data shows that gasoline demand grew by 646000 BPD in July, despite India’s second place in coronavirus cases. This country imports almost all the crude oil it needs.
In a call scheduled for January 25, 00:30 am GMT+2, Microsoft will publish the company's earnings for the final quarter of 2022 and comment on the results, projections, and outlook for the nearest future of the company.
In a call scheduled for January 25, 00:30 am GMT+2, the Tesla Inc. team will publish the company's earnings for the final quarter of 2022 and comment on the results, projections, and outlook for the nearest future of the company.
The Netflix stock (NFLX), with a market cap of $145.17B and a whooping 10 000+% rise since its inception 16 years ago, experienced some turbulence for a short period last year while trading around the $250 share price. However, the NFLX stock quickly recovered and rose to over $300 towards the end of the previous quarter of 2022.
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.
Last year was tough for the Japanese yen. USDJPY gained more than 30% over 2022, striking above 150 in October. While anticipation of slower Fed rate hikes pulled the pair below the 130 level at the start of 2023, the speculations over the destiny of BOJ’s yield control policy grabbed the attention of the Japanese assets in the middle of January. What lies ahead for traders of the Japanese yen?
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