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
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
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
Wall Street
Bullish
Gold
Bullish
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • Join @IlyaSpivak 's #webinar at 10:00 PM ET /2:00 AM GMT to prepare for the week ahead in trading $AUDUSD Register here: https://t.co/sZNWPVRHA0 https://t.co/fP9OUELm3l
  • Wall Street Futures Update [delayed]: S&P 500 (+0.36%) Dow Jones (+0.39%) Nasdaq (+0.18%) -BBG
  • RT @IGSquawk: The RBA will announce its decision on the Official Cash Rate at 14:30 AEST. Markets currently pricing in a 53.5% chance of a…
  • The #Euro has dropped through support guiding it higher from late-March lows, suggesting that the end of a corrective rebound has given way to downtrend resumption. Get your $EURUSD market update from @IlyaSpivak here: https://t.co/gpKowYNmGi https://t.co/WtFZCdOqIn
  • Gold Prices May Fall on FOMC Minutes, Recession & Credit Risks - https://www.dailyfx.com/forex/fundamental/forecast/weekly/chf/2020/04/04/Gold-Prices-May-Fall-on-FOMC-Minutes-Recession-Credit-Risks.html
  • (Asia AM) The US #Dollar and Japanese #Yen fell as #coronavirus cases seemed to stabilize in the US and Europe. The #DowJones and #SP500 soared. Local policymakers also hinted at more stimulus $USDJPY - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2020/04/06/US-Dollar-Japanese-Yen-Sink-as-Dow-Jones-Soars-on-Virus-Easing-Bets.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/sGqWNz7v7M
  • The US Dollar appears to be back on the offensive against ASEAN FX such as the Singapore Dollar and Malaysian Ringgit. The Philippine Peso gained. What does USD face from here? Find out from @ddubrovskyFX here: https://t.co/U8VGdJPIST https://t.co/89gYtuDcFw
  • 🇯🇵 JPY Real Cash Earnings (YoY) (FEB), Actual: 0.5% Expected: -0.7% Previous: 0.7% https://www.dailyfx.com/economic-calendar#2020-04-06
  • 🇯🇵 JPY Overall Household Spending (YoY) (FEB), Actual: -0.3% Expected: -3.4% Previous: -3.9% https://www.dailyfx.com/economic-calendar#2020-04-06
  • 🇯🇵 JPY Overall Household Spending (YoY) (FEB), Actual: -0.3% Expected: -3.3% Previous: -3.9% https://www.dailyfx.com/economic-calendar#2020-04-06
Crude Oil Price Outlook Brightens, Trending Higher

Crude Oil Price Outlook Brightens, Trending Higher

2020-02-19 12:00:00
Martin Essex, MSTA, Analyst
Share:

Crude oil price, news and analysis:

  • News that the number of new coronavirus cases in China has fallen for a second successive day is helping oil prices on hopes that the outbreak will have less impact on global demand than once feared.
  • Moreover, the trend higher may well continue as China prepares to cut its benchmark interest rate and hopes persist that OPEC+ may cut supplies further.

Crude oil price outlook positive

The outlook has brightened for the price of US crude oil – West Texas Intermediate, or WTI – as a recovery that began on February 10 has developed into a trend higher that looks likely to continue for a while yet. That recovery has taken the price from a February 10 low of $49.57 per barrel to almost $53 at the time of writing but remains way below the high of $65.46 reached early in January and which is a possible long-term target.

US Crude Oil Price Chart, Two-Hour Timeframe (February 5-19, 2020)

Latest US crude oil price chart.

Chart by IG (You can click on it for a larger image)

Understanding the Core Fundamentals of Oil Trading
Understanding the Core Fundamentals of Oil Trading
Recommended by Martin Essex, MSTA
Understanding the Core Fundamentals of Oil Trading
Get My Guide

Several factors are responsible for the advance:

  • The number of new coronavirus cases in China has fallen for a second successive day, suggesting the hit to global demand from the outbreak may be less than once feared,
  • China is reported to be poised to cut its benchmark loan prime rate Thursday to ease the strain on its companies,
  • The OPEC+ group of OPEC members and their allies is to meet in Vienna on March 6 and is reported to be considering an advisory panel recommendation to cut supply by a further 600,000 barrels per day,
  • Oil output from Libya has dropped sharply because of a blockade of its oilfields and ports, and
  • The US has imposed sanctions on a unit of Russia’s Rosneft in an attempt to keep Venezuelan crude from the market.

After the recent run higher, a near-term correction in the crude price would be no surprise. However, the market is not yet overbought and traders might well see any slip lower as an opportunity to buy.

Oil - US Crude MIXED
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 10% -13% 4%
Weekly -27% 34% -19%
What does it mean for price action?
Get My Guide

--- Written by Martin Essex, Analyst and Editor

Feel free to contact me via the comments section below

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

DISCLOSURES

News & Analysis at your fingertips.