Oil plunged after the ship blocking the Suez Canal was partially re-floated. A $20 billion wave of block trades hit markets on Friday.
Oil industry: Donald Trump’s 2 tweets boost the price
Yesterday we saw how WTI oil prices jumped up after Donald Trump’s 2 tweets and reached the 25.30 mark. Today the WTI price went even higher and now it’s 27.32 dollars per barrel. There is definitely an upward trend, breaking through 23.6 Fibonacci level at the 26.85 mark and two lines of Moving Average, 50 and 100, respectively.
How did the oil war get started?
The Organization of Petroleum Exporting Countries met in early March and failed to agree on the amount of oil supply cut amid the coronavirus outbreak. It meant that starting April 1 all the members could pump as much oil as they want. As a result, both unlimited supply and reduced demand (because of lockdowns for many economies around the world) cause oil prices to fall dramatically.
What is the forecast for the oil market?
The OPEC+ meeting will be hold on April 6. It’s expected that Russia and Saudi Arabia will negotiate and cut oil production to raise the WTI price to nearly 30 dollars per barrel. The United States has traditionally not been a part of these kinds of meetings, but its new status as the world’s largest oil producer, coupled with its particularly expensive method of extracting oil, means that things could be about to change.
The US dollar is heading for the best week in three. The market sentiment is mixed as optimism about the global economic recovery was outshined by increasing tensions between the West and China.
A huge container carrier blocked the entire Suez canal. Among many, there are oil tankers waiting to continue their way through the canal. How is WTI price reacting?
The Australian economy has been on a steady recovery path, and now we have a very symbolic confirmation that S&P ASX 200 is about to cross 7000!
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The Reserve Bank of New Zealand will hold a meeting on Wednesday, April 14, at 05:00 MT.