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
More View more
Real Time News
  • Japan says North Korea may have launched ballistic missile Kyodo via BBG
  • Senate GOP has votes to block debt limit, government funding bill - BBG
  • While Bitcoin is really buried into that support at the moment, Ethereum has been more range-bound of recent and as of this writing, price is not quite close to range support. Get your market update from @JStanleyFX here:https://t.co/zKcph0iMG2 https://t.co/36l0wHfbPx
  • 🇰🇷 Consumer Confidence (SEP) Actual: 103.8 Previous: 102.5 https://www.dailyfx.com/economic-calendar#2021-09-27
  • Heads Up:🇰🇷 Consumer Confidence (SEP) due at 21:00 GMT (15min) Previous: 102.5 https://www.dailyfx.com/economic-calendar#2021-09-27
  • Fed's Powell: - Inflation is elevated, and will remain so before moderating - Bottleneck consequences are more persistent than expected
  • Fed's Powell: - The Fed would take action to prevent sustained increases in inflation - Higher prices and hiring troubles could be more enduring than anticipated
  • Powell: it's okay, I have a plan https://t.co/APbA1IbOQI
  • Despite Rosengren (Boston hawk) out on Sep 30 and now Kaplan (Dallas hawk) out on Oct 8, the Dollar has traded fairly steadily. Ditto for the US 10-Year yields.
  • The US is in focus over the coming days with Fed Chair Jerome Powell set to testify in front of the Senate Banking Committee, while September US PCE data and two gauges of US manufacturing activity are due. Get your market update from @CVecchioFX here:https://t.co/9RpmQxXXAw https://t.co/Uup86TPbJm
Oil Price Analysis: Downtrend Intact Ahead of OPEC

Oil Price Analysis: Downtrend Intact Ahead of OPEC

Nick Cawley, Strategist

Oil Price/OPEC News and Talking Points

- A backdrop of weaker global growth, US-China trade wars and a strong US dollar greet OPEC officials.

- A negative chart set-up could see Brent dip below $70/bbl.

The DailyFX Q2 Trading Forecasts for all major currencies, commodities and indices, are availableto download to help you make more informed trading decisions.

Oil Price Hit by Multiple Headwinds

The latest OPEC meeting starts in Vienna today against a gloomy backdrop for the oil market. OPEC members, who are said to be looking to increase production, will have to factor in a mass of new headwinds that may limit their production hike. The US-China trade war shows no sign of abating with both sides ramping up trade tariffs in a tit-for-tat manner, dampening growth prospects and the demand for oil. In Europe the economic strength seen in Q1 has seemingly passed with recent data prompting analysts to revise down growth prospects for the rest of 2018. In addition, the recent strength of the US dollar has weighed on oil and this looks unlikely to change with another two 0.25% US interest rate hikes likely this year, making a total of four in 2018. The production increase is being led by Saudi Arabia and Russia with the former recently saying that a one million barrel a day increase may be workable.

Oil Price Chart Remains Negative

The latest daily oil chart continues to throw out negative signals with a drop below $70/bbl. a distinct possibility over the next few weeks. Support kick-in either side of $71/bbl. from 50% Fibonacci retracement and the January 25 swing high before the 61.8% retracement level at $68.86/bbl. and the 200-day moving average at $68.55/bbl. become relevant. On the upside $73.30/bbl. may provide weak resistance ahead of a more formidable cluster of resistance around $76.00/bbl.

The latest IG Client Sentiment Indicator shows how retail are positioned on a wide variety of financial markets, including foreign exchange, commodities, indices and cryptocurrencies.

Brent Oil Daily Price Chart (October 2017 – June 21, 2018)

Oil Price Analysis: Downtrend Intact Ahead of OPEC

If you are new to foreign exchange, or if you would like to update your knowledge base, download our New to FX Guide and our Traits of Successful Traders to help you on your journey.

What’s your opinion on the Oil? Share your thoughts with us using the comments section at the end of the article or you can contact the author via email at Nicholas.cawley@ig.com or via Twitter @nickcawley1

--- Written by Nick Cawley, Analyst

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

DISCLOSURES