Oil prices rebounded slightly on Friday but are still expected to show losses for the week due to concerns about slowing growth in the US and China. US crude futures rose 2.7% to $70.41 per barrel, while the Brent contract increased by 2.5% to $74.33 per barrel.
Oil surged amid soft dollar
2022-12-16 • Updated
Oil is edging higher due to the overall risk-on sentiment and a weaker US dollar, despite rising cases in India. India is one of the main oil importers, and it continues to report more than 300 000 infections every day. This year, oil has been boosted by the vaccine rollout, but some local coronavirus outbreaks and concerns over inflation limited its gains.
Besides, OPEC on Tuesday gave a strong outlook on the global recovery in oil demand in 2021 due to the growth in China and the United States, which OPEC believes outweighs the coronavirus crisis in India. As a result, the OPEC members have decided to gradually ease oil production cuts.
Let’s discuss oil on the example of UK Brent oil (XBR/USD). The asset has been moving inside the ascending channel since late March. Pay attention to how the price has reversed up from the lower trend line: over and over again. Thus, this level acts as strong support for oil, and as we expected it has bounced off it today again. The way up to $70.00 a barrel is clear now. It’s a psychological mark, which oil is likely to struggle to cross on the first try. However, sooner or later it may cross it as well and rally up further and even beat this year’s high of $71.00. In the opposite scenario, the move below the 50-day moving average of $65.60 will press oil down to a late April low of $64.00.
China's economy is rocketing. On the other hand OPEC+ countries take the decision to cut the production. What will be the impact on the oil price?
US oil exports reached a record last week at five million barrels a day, according to Energy Information Administration data…
Let's dive into the latest developments shaping the global economic landscape. Good news first: the threat of an unprecedented US debt crisis has receded, as US lawmakers passed a bill to raise the debt ceiling and avoid a catastrophic default. Phew! But don't pop the champagne just yet, because storm clouds are still looming. High inflation, rising interest rates, and sluggish growth are challenges that have yet to disappear.
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.
Let's dive into the world of gold. Currently, the price of gold, represented by XAUUSD, is stuck in indecision, hovering around the $1,975 mark. The market is anxiously awaiting two important factors: the release of the Federal Reserve's meeting minutes and the extension of the US debt ceiling.