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
Bullish
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
GBP/USD
Bullish
USD/JPY
Mixed
Gold
Mixed
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
Oil - US Crude
Bearish
Bitcoin
Mixed
More View more
Real Time News
  • Fed's Williams: - Operating framework is currently very efficient and effective - No need for a reconsideration on operating framework for Ample-reserves $SPX $DXY
  • The Atlanta Fed GDPNow model forecast for Q4 rises to 0.42%, previously at 0.31% $DXY $SPX
  • UK Election Poll (Kantar) - Conservatives 45% (+8) - Labour 27% (unch) - Lib Dems 16% (-1) - Brexit Party 2% (-7)
  • En español: La tendencia del oro carece de claridad por la falta de avances en la guerra arancelaria y las dudas sobre el posible desenlace del conflicto comercial entre Estados Unidos y China #trading #XAUUSD $XAUUSD $gold https://t.co/WuxBJAciue https://t.co/Qq8yyc8Nbh
  • Chair of House Committee on Ways and Means Neal: - USMCA could be completed by Christmas if backed by Trump $DXY $CAD $MXN
  • Chair of House Committee on Ways and Means Neal: - Differences on USMCA are pretty small - Democrats no worried about handing Trump a victory #trade $DXY $MXN $CAD
  • RT @JohnRentoul: New Kantar poll, 14-18 Nov: 18-pt Tory lead Con 45% +8 Labour 27% ±0 Lib Dem 16% -1 Green 3% ±0 Brexit Party 2% -7 (Chan…
  • Commodities Update: As of 15:00, these are your best and worst performers based on the London trading schedule: Silver: 0.23% Gold: -0.07% Oil - US Crude: -1.75% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/PBjEYZBPo7
  • Crude #oil is down below $56 today to retest November lows https://t.co/90SZJRtYld
  • Aussie & Kiwi Dollar to USD Price: AUD/USD, NZD/USD Reversal’s Key Levels More details in the link below: https://www.dailyfx.com/forex/technical/home/analysis/aud-usd/2019/11/19/Aussie-Kiwi-Dollar-to-USD-Price-AUDUSD-NZDUSD-Reversals-Key-Levels-MK.html?CHID=9&QPID=917714 https://t.co/LXEGC13aCn
Crude Oil Price Analysis: Oil Boosted by New Saudi Energy Minister, Eyes on OPEC report

Crude Oil Price Analysis: Oil Boosted by New Saudi Energy Minister, Eyes on OPEC report

2019-09-10 08:10:00
Justin McQueen, Analyst
Share:

Oil Price Analysis and News

  • Crude Oil Prices Boosted by New Saudi Energy Minister
  • Trade Wars Presents Downside Risks
  • JMMC Meeting

Crude Oil Prices Boosted by New Saudi Energy Minister

Crude oil prices extended its recent winning streak with Brent crude futures trading at roughly 6-week highs. While the improved risk sentiment amid Chinese policy easing has underpinned prices in recent sessions, the latest catalyst had stemmed from the appointment of the Saudi King’s son, Prince Abdulaziz bin Salman, as the new energy minister. Markets reacted positively to this announcement on hopes that production cuts could be extended, particularly following comments from the Prince that the OPEC+ alliance will be in place for the long term. That said, Prince Abdulaziz is expected to face mounting pressure from Saudi royals in order to boost oil prices to help reduce current budget constraints and to also lift the value from the partial privatisation of Saudi Aramco, which plans to list 1% of Aramco this year.

Trade Wars Presents Downside Risks

However, while oil markets have reacted positively to the potential of an extension of current OPEC cuts, the challenges for the oil market remains on the demand side amid the slowdown in the global economy stemming from US-China trade wars. Subsequently, this has prompted Goldman Sachs to yet again lower their 2019 oil demand growth to 1mbpd from 1.1mbpd, therefore a possible escalation of trade wars continues to pose downside risks to the oil market. Of note, the OPEC monthly report is scheduled to be released on September 11th.

JMMC Meeting

Elsewhere, market participants will be looking towards the latest JMMC meeting, which will take place on September 12th. While a decision pertaining to an extension of production cuts is not expected, the OPEC Secretary General did that the JMMC may discuss new metrics the for current global oil cuts.

Brent Crude Price: Daily Time Frame (Jan 2019 – Sep 2019)

Please add a description for the image.

On the technical front, trendline resistance from the 2019 peak has curbed further upside for now. Although, with US APIs scheduled later today and with tomorrows DoE report expected to show a 4th consecutive drawdown in stockpiles, this could push Brent crude futures through resistance and open the doors for a test of $65, providing APIs show a sizeable drawdown. On the downside, support resides at the psychological $60 handle.

Oil Impact on FX

Net Oil Importers: These countries tend to be worse off when the price of oil rises. This includes, KRW, ZAR, INR, TRY, EUR, CNY, IDR, JPY

Net Oil Exporters: These counties tend to benefit when the price of oil rises. This includes RUB, CAD, MXN, NOK.

Recommended Reading

What Traders Need to Know When Trading the Oil Market

Important Difference Between WTI and Brent

--- 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

News & Analysis at your fingertips.