2020-12-01 • Updated
Investors are waiting for the significant decision of OPEC+ members to prolong oil output cuts or stop them. Yesterday, they failed to come to a common conclusion. That pushed oil prices down below $45.00. However, the market euphoria over having a vaccine soon drove riskier assets upward as well as oil.
OPEC+ will meet the next time on Thursday to discuss the oil supply’s regulations. According to RBC Capital Markets, OPEC+ should agree on further cuts for about 3 months. On the one hand, the virus is still a severe problem, which has strong pressure on oil demand. On the other hand, the recent Chinese Manufacturing PMI report was better than expected and signaled the industry expansion. China is a huge oil importer, that’s why a recovery of the economic activity there will increase the oil demand, which should underpin oil prices in the end.
WTI oil is trading sideways from $44.65 to $45.65. If it manages to break the top of this range, the way up to the high of November 26 at $46.00 will be clear. On the flip side, the move below the support of $45.00 will drive crude oil to yesterday’s low of $44.65. However, it’s likely to pull back from $45.00 and turn to the upside to continue its zig-zag movement.
To trade WTI oil with FBS you need WTI-21F, which expires on December 18.
Crude oil futures surged on Monday due to disruptions in Russian refining capacity caused by Ukrainian drone strikes and Moscow's decision to cut output to comply with OPEC+ targets. The West Texas Intermediate (WTI) contract for May settled at $81.95 a barrel, up $1.32, while the Brent contract for May settled at $86.57 a barrel, also up $1.32. Russia instructed...
Bearish scenario: Sales below 80.00 with TP1: 79.60... Anticipated bullish scenario: Intraday purchases above 80.70 with TP: 81.50...
Brent oil is currently on a bullish trend, facing resistance near $84 and supported by the 200-day EMA. Breaking above this level could lead to a climb towards $90. Short-term support is observed around $80, backed by the 50-day EMA. As summer approaches and travel increases, crude oil tends to benefit from seasonal patterns. Despite temporary setbacks, buying...
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
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