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
  • The Australian Dollar remains vulnerable to most of its major counterparts, with AUD/USD and AUD/JPY resuming losses. Did AUD/NZD bottom? AUD/CAD may consolidate. Get your weekly Australian Dollar forecast from @ddubrovskyFX here: https://t.co/sjh91mjtXs https://t.co/dGT067zKnH
  • 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/VLZQhrQTAf
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Learn about the importance of the ISM manufacturing index here: https://t.co/Xr3xtoFpZy https://t.co/j5xDAG6LLb
  • While the meetings of central bankers in the US, Japan and the UK will be front, left and center of traders’ minds this coming week, it would be wise not to ignore next Sunday’s German Federal Election. Get your euro forecast from @MartinSEssex here: https://t.co/m920Uvmngm https://t.co/yQYtfHf66s
  • Take a closer look visually at the most influential global importers and exporters here: https://t.co/G58J1dg6y3 https://t.co/Dqq9S9vGvo
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here: https://t.co/rz7fqhRoMG https://t.co/lccPTTlvj0
  • GBP/USD’s consolidation could end soon if price breaks out of a symmetrical triangle in play since July. At this time, a downside breakout is likely following the appearance of a death cross. Get your weekly $GBP forecast from @DColmanFX here: https://t.co/WIKdSesfkJ https://t.co/Fx0qr32xgI
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/IRS9MaA7h8
  • The Federal Reserve rate decision is likely to sway the near-term outlook for the price of gold as the central bank appears to be on track to scale back monetary support. Get your weekly gold forecast from @DavidJSong here: https://www.dailyfx.com/forex/fundamental/forecast/weekly/CHF/2021/09/18/Gold-Price-Outlook-Hinges-on-Fed-Rate-Decision-Forward-Guidance.html https://t.co/dWWxtErjK0
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/arxYmtQeUn https://t.co/4qxwiJsV1K
Crude Oil Analysis: Bearish Momentum to Continue Despite Short Term Lift

Crude Oil Analysis: Bearish Momentum to Continue Despite Short Term Lift

Justin McQueen, Strategist

Oil Price Analysis and News

  • Oil Plunge to Prompt Russian Involvement in OPEC Curb
  • API Data Breaks Run of Rising Oil Stockpiles
  • Short Term Gain, Long Term Pain

For a more in-depth analysis on Oil Prices, check out the Q4 Forecast for Oil

Oil Plunge to Prompt Russian Involvement in OPEC Curb

Oil prices continued its descent with WTI and Brent crude losing as much as 6% in yesterday’s session. Consequently, WTI and Brent crude have dropped 30% and 27% respectively from the peak seen on October 3rd. That said, given the drop in oil prices, it would be hard for Russia to not take part in the expected OPEC led oil production cuts at the Bi-Annual OPEC meeting on December 6th, despite stating that they would take a wait-and-see-approach. Since reports circulated that Russia may not take part in the latest round of production cuts, oil prices have dropped around 6%.

As mentioned yesterday, the oil market is not yet convinced by OPEC’s strategy in believing that it will prevent oversupply, despite talk of a potential cut of up to 1.4mbpd. Russian involvement would be needed to increase its influence in stabilizing the oil market and given the sustained drop in prices, it is likely that Russia will participate. Eyes will be on any jawboning to prop up prices ahead of the meeting.

API Data Breaks Run of Rising Oil Stockpiles

A slight reprieve in oil prices this morning with both Brent and WTI clawing back some losses. This has largely stemmed from the surprise drawdown in yesterday’s API inventory report, which showed a 1.5mln barrel drop in stockpiles, against an expected 2.9mln barrel rise. If this is confirmed by the EIA this would end a run of 8 consecutive weekly oil builds and provide a short-term bounce in oil prices. However, this has not changed the overall and sentiment, which will continue to remain weak amid concerns of an oversupplied market in 2019, reflected by both Brent and WTI crude trading in contango. A more notable price recovery would need to the oil forward curve move back into backwardation.

What Traders Need to Know When Trading the Oil Market

Important Difference Between WTI and Brent

OIL PRICE CHART: Daily Time-Frame (Dec 2015-Nov 2018)

Crude Oil Analysis: Bearish Momentum to Continue Despite Short Term Lift

Chart by IG

Brent crude has run into resistance at the 38.2% Fibonacci Retracement level (rise from 2016 low to 2018 high), which keeps the bearish momentum intact. On the downside, crucial support is situated at $61.67, which marks the 2018 lows. A close below sets Brent on course to make a test of the $60/bbl mark. Based on IG client sentiment the outlook for oil prices is mixed.

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX

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

DISCLOSURES