2022-12-16 • Updated
OPEC+ shocked investors last week with its decision to prolong output cuts by 500 000 barrels a day. Besides, Saudi Arabia announced it would keep voluntary cuts of 1 million barrels a day throughout April. That actions sent oil prices soaring. Goldman Sachs and JPMorgan upgraded their forecasts. According to International Monetary Fund, such high oil prices helped OPEC+ countries to meet government expenses. Overall, everybody is happy.
The question is when oil will fall? The current high level of prices is artificially supported by OPEC+. Some criticism has risen over OPEC’s decision as analysts believe the alliance risks over-tightening the oil market. Indeed, oil demand is increasing as the whole world has eased restrictions and thus consumption has started rebounding. Airlines and manufacturing industries are getting back to work, people are traveling and driving cars more. That’s why analysts are worried that OPEC is keeping output cuts, sending prices too high, while it’s time to start increasing oil output.
Brent oil is moving in a nice uptrend with all the moving averages in ascending order. The RSI indicator is close to the 70.00 level, which signals the overbought area. Besides, the price approaches the upper line of Bollinger Bands, which indicates the soon reverse down as well. Brent can likely rally to $73.00, 2020’s high. At that point, the price may lose its steam and drop.
To trade oil with FBS, choose BRN-21K, which expires on March 31.
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...
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...
Bearish Scenario: Sales below 78.99 with TP1: 77.93, TP2: 77.45, and upon its breakout TP3: 76.56 and TP4: 75.70 Bullish Scenario: Purchases above 78.00 (wait for a pullback to this area) with TP1: 1679.00 (uncovered POC*), TP2: 79.33, and TP3: 79.66 intraday
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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