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.

Free Trading Guides
EUR/USD
Bearish
GBP/USD
Mixed
USD/JPY
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
Gold
Mixed
Oil - US Crude
Bearish
Bitcoin
Bullish
More View more
Real Time News
  • The Indian Rupee 2020 outlook is bearish as India faces stagflation risk amid rising onion and crude oil prices. $USDINR may rise in the medium-term as the RBI defers hiking rates. Get your market update from @ddubrovskyFX here: https://t.co/lRrlZjjfLY https://t.co/nShTRUpxu6
  • Indices Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Germany 30: 1.19% France 40: 1.15% US 500: 0.20% Wall Street: 0.19% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/DNuy11iRcX
  • ECB's Lagarde says inflation upward move is really minor $EUR
  • LIVE NOW! Currency Strategist @PaulRobinsonFX runs through his favorite charts and potential set-ups for the week ahead in the FX and CFDs market here - https://www.dailyfx.com/webinars/108721147?CHID=9&QPID=917720
  • RT @IGTV: #BankofEngland ready to cut rates? Strong #PMI data may steer it away from a rate cut as @JMcQueenFX from @DailyFX tells @JeremyN…
  • Heads Up:🇪🇺 EUR WEF: Lagarde, Zhu, Mnuchin, Scholz, Georgieva, Kuroda, Javid due at 10:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-01-24
  • OPEC is continuing to discuss production cut extension to the end of the year, according to Tass
  • ECB's Knot says inflation target needs to be clarified, adds that current concept is not easy to communicate $EUR
  • OPEC is unlikely to ease production cuts in March as the market is still quite bearish, according to Tass
  • Hey traders! Join Senior Strategist @CVecchioFX January 24th 9AM EST/ 4:00PM GMT for a live discussion on US-China #tradewar: How FX markets will respond the the phase two deal. Only on Facebook and Twitter live! https://t.co/0nfLRtsWBk
Crude Oil Price Braced By Supply Cuts And Fresh Chinese Stimulus

Crude Oil Price Braced By Supply Cuts And Fresh Chinese Stimulus

2019-01-16 10:50:00
Nick Cawley, Analyst
Share:

Brent Oil and US Crude Oil Prices and Charts:

  • Brent stabilizing around $60/bbl.
  • Chinese stimulus and production cuts underpinning the price.

Q1 2019 Oil Trading Forecast.

Crude Oil Price May Nudge Higher

The price of crude continues to trade around $60/bbl. and above both the 20- and 50-day moving averages, propped up by a positive fundamental backdrop. Overnight the Chinese central bank (PBoC) boosted market liquidity by a record $83 billion in a further attempt to boost the country’s flagging economy. Recent official data showed Chinese manufacturing slowing down, while both annual CPI and PPI prints missed expectations. In addition, the recent OPEC+ oil cuts continue to support Brent crude, via reduced inventory, although they will need to be adhered to in the face of a slowing global economy. The next OPEC meeting is scheduled for mid-April.

How to Trade Oil – Crude Oil Trading Strategies

Crude continues to trade above $60/bbl. and may look to slowly grind higher as inventories decrease. The daily chart shows crude above the two shorter moving averages and trading either side of the 61.8% Fibonacci retracement of the June 2017 – October 2018 rally that saw the price of crude nearly double from $44.5/bbl. to $86.65/bbl. A 50% retracement of this move would put crude at $65.60/bbl. although the January 11 high at $62.50/bbl. would need to be broken convincingly first. According to a recent Reuters survey, Brent is expected to average $65/bbl. this year.

Brent Crude Oil Daily Price Chart (April - January 16, 2019)

Crude Oil Price Braced By Supply Cuts And Fresh Chinese Stimulus

WTI vs Brent – Top 5 Differences Between WTI and Brent Crude Oil

Traders may be interested in two of our trading guides – Traits of Successful Traders and Top Trading Lessons – while technical analysts are likely to be interested in our latest Elliott Wave Guide.

What is your view on Oil – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author at nicholas.cawley@ig.comor via Twitter @nickcawley1.

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

DISCLOSURES

News & Analysis at your fingertips.