
US oil exports reached a record last week at five million barrels a day, according to Energy Information Administration data…
2022-08-30 • Updated
Financial giants such as JPMorgan and Goldman Sachs anticipate crude oil to skyrocket as high as $100 as the global economy rebounds. Oil prices haven’t been at such a high level since 2014. What are the reasons behind banks’ optimism? The banks believe that Biden’s fiscal stimulus of $1.9 trillion will boost consumption and thus increased demand in combination with massive output cuts would fuel the recent surge in oil prices. However, there is still much depends on OPEC+ decisions on oil supply.
All these banks’ forecasts are good, but won’t oil be replaced by alternative energy resources? The US President committed to fight climate change and support the development of electric vehicles. His goal is to make the US carbon-free by 2050. It seems that there is no place for crude oil in our future. Yes, but JPMorgan assured: “We’re going to be short of oil before we don’t need it in the years to come. We could see oil overshoot towards, or even above, $100 a barrel.” Besides, Goldman Sachs emphasized that Biden’s stimulus will be directed to middle and low-class people, who mostly drive petrol-drive cars, not Teslas.
Brent crude has gained more than two-thirds so far since October and reached $63 a barrel. The price has broken through all weekly moving averages, confirming an uptrend. Now the price is just under the key psychological level of $65.00. If it manages to break it, the way up to the high of January of the last year at $70.00 will be clear. Support levels are at the 200-week moving average of $59.00 and the low of late January at $55.00.
The current CFD for Brent oil is BRN-21J, which expires on February 26.
US oil exports reached a record last week at five million barrels a day, according to Energy Information Administration data…
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.
FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.
Your request is accepted.
A manager will call you shortly.
Next callback request for this phone number
will be available in
If you have an urgent issue please contact us via
Live chat
Internal error. Please try again later
Don’t waste your time – keep track of how NFP affects the US dollar and profit!
Beginner Forex book will guide you through the world of trading.
We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.