Oil falls nearly 1% on oversupply concerns, U.S. jobless data.
Check out my freshly updated US Oil charts.
WEST TEXAS OIL
Daily shows this pair has made a $8.51 move up and should continue to the 1.618 at $79.97 which will bring $3.95. The rsi is in the sell zone, however is still pointed up indicating further up movement to come from this pair before it decides to move down.
Hourly shows this pair came up to the .270 at $76.88 and dropped back down. Both the rsi and MacD are in the buy zone but still pointed down indicating there may be further down movement to come from this pair. It may drop down a few pips but it should come back up to the .270 and up to the 1.618 at $78.04 which will give $2.16.
USOil in the news
“While oil-market fundamentals may have started to normalise, much of the progress comes from the supply side, while demand continues to disappoint,” said Emily Ashford, energy analyst at Standard Chartered Bank, according to CNBC.
The EIA estimates current US oil demand to have risen to more than 18 million bbl/d from less than 14 million bbl/d in April compared with an average of 20.01 million bbl/d last January, according to Oilprice.
Oil futures steadied on Monday as rising U.S.-China tensions weighed on sentiment, but prices drew support from reports that OPEC and Russia were close to a deal extending output cuts.
“The possibility of heightened tensions does pose a risk for the recent rally in oil prices,” said Harry Tchilinguirian, head of commodity research at BNP Paribas.CNBC
“If talks do end with an extension of the agreement without reducing cut levels, the market is likely to see some renewed buying interest,” said Fraser. “However, demand numbers should remain a source of concern moving forward, as COVID-19 remains a challenge, even as new geopolitical headwinds for crude and the broader economy emerge.”
“The current proposal is to extend the production by at least one month and a maximum of three months. If agreed, the move can further strengthen the [WTI, the U.S. benchmark] crude oil price and Brent oil prices,” wrote Naeem Aslam, chief market analyst at AvaTrade in a Monday research note.MarketWatch
In a sign of changing times, a U.S. oil refining company is converting one of its plants into a producer of clean fuel.
The plant will stop consuming crude oil at the end of July this year, and 200 workers will be laid off, according to HollyFrontier.Old U.S. Oil Refinery to Pursue New Green Life After Crude Crash according to business.financialpost.com
Was this article helpful for you? What do you think of the USOIL and the upcoming trading opportunities? I often use Pivot points in my target trading analysis. I have already written an article where I explained in detail how target trading works.
Check out the economic calendar for the highlights and major events of USOil and related currency pairs for this week.
I’d love to know what you thought of this article. Don’t forget to go to our facebook page and give us a “Like”.
Before participating in Foreign Currency Trading (Forex Market) you must consider carefully the risks of the market, which has big rewards potential, yet is also extremely risky. Consider all the risks carefully before investing in the Forex Market. Remember that all the information and signals, prices and trade recommendations provided here on Forex and Profits is only general information and market commentary, thus, it does not incorporate investment advice.