News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/MtwDvGUpTJ
  • $USD breakout pulling back a bit but so far, that pullback has held support in the prior resistance zone $DXY https://t.co/6jSbjqioiI https://t.co/N1wxzktF0H
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/LBMggNJrmZ
  • ECB's Makhlouf says fears of excessive inflation are exaggerated $EUR
  • It seems the markets are riding high, but risk is always lurking around the corner. Consider your escape plan before you find yourself in collapsing market. What are the top havens for different conditions in 2021? Find out from @JohnKicklighter here: https://t.co/1oeXWEsJkb https://t.co/7U3ZJR0kDB
  • Angola to cut November oil exports to lowest since at least 2008 - Angola exported 1.1mbpd of crude oil in September, according to Refinitiv
  • ECB's Kazaks - The 2% price target will not be met in the medium term - Inflation outlook likely to be revised higher
  • Emotions are often a key driving force behind FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here: https://t.co/eILWbFgHRE https://t.co/fs5IRP7MJy
  • ECB's De Cos says conclusion of FT report is incompatible with ECB guidance $EUR
  • 💶 Inflation Rate YoY Final (AUG) Actual: 3% Expected: 3% Previous: 2.2% https://www.dailyfx.com/economic-calendar#2021-09-17
Crude Oil Price Outlook Eyes OPEC Output Restart, US and China Demand

Crude Oil Price Outlook Eyes OPEC Output Restart, US and China Demand

Daniel Dubrovsky, Strategist
Crude Oil Forecast

Crude Oil Fundamental Outlook: Neutral

  • Crude oil prices may be exposed to competing fundamental forces
  • US and China Oil demand recovering, OPEC to raise output next
  • All eyes turn to US jobs report which may boost market sentiment

Crude oil prices may struggle finding further upside momentum ahead as the commodity could be exposed to competing fundamental forces. WTI has been slowly recovering from April’s bottom as countries around the world have been gradually easing lockdown measures imposed to contain the outbreak of the coronavirus. This has been helping to push up demand for the commodity.

The United States and China, which are the two largest economies in the world, have seen their demand for crude oil rise after finding a bottom during the peak of the coronavirus outbreak. Oil consumption has appeared to recover more swiftly from China as the US contends with a surge in cases and deaths as of late. Still, these two economic powerhouses have been arguably aiding to boost the price of oil.

According to the Energy Information Administration (EIA), the two nations combined accounted for about 34 percent of global oil consumption in 2017. 20% of that was from the US. Should cases and deaths continue rising here, that may lead to stricter lockdown measures, reversing progress in restoring oil demand to pre-COVID levels. That may weigh on oil in the near term.

OPEC+ Gradually Restoring Oil Output

Meanwhile the Organization of the Petroleum Exporting Countries (OPEC) is planning on reversing some of the output cuts initiated earlier this year heading into August. According to Bloomberg, the OPEC+ alliance took off about 10 percent of world supply earlier this year. Now in August the cartel, as well as external partners, are expecting to restart roughly 1.5 million barrels of output next month.

All Eyes on US Jobs Report

That may keep prices under pressure as financial markets await the US jobs report on Monday. On the whole, data out of the world’s largest economy continues to broadly outperform relative to economists’ expectations. Higher-than-expected employment gains may boost expectations of future growth, especially with the Federal Reserve in no rush at all to raise rates or unwind its balance sheet any time soon.

With that in mind, it is a neutral call for the crude oil fundamental outlook.

Discover your trading personality to help find forms of analyzing financial markets

World’s Largest Consumers of Oil Are Seeing Demand Recover

World's largest consumers of oil

--- Written by Daniel Dubrovsky, Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES