Oil Breaks through US$50

August 19, 2016

Oil prices broke through the US$50 a barrel mark today as speculation swarmed that Opec would move to freeze production at their upcoming meeting.

The price has now risen over US$8 a barrel in 2 weeks after Saudi energy minister Khalid bin Abdulaziz Al-Falih saidthat Opec would meet in the foreseeable future to discuss production cuts to stem the flood of oil in the market.

 “The market has taken solace from statements made by various oil ministers including officials from Saudi Arabia hinting at coordinated action by producers to freeze output. US inventory data released on Wednesday also bolstered bullish sentiment as the EIA reported a draw in gasoline and crude oil stocks for the previous week.” Noted Shakhil Begg, an analyst with Thomson Reuters.

A less than optimistic Fed minutes meeting this week is also supporting the oil price as more analysts are starting to predict that the US Central bank won’t raise rates until sometime next year,

"Crude prices continue to benefit from the weaker US dollar post-Fed minutes with markets continuing to price in a dovish global economic outlook. Chat from Opec about production freezes is probably continuing to support the price as traders race to catch the boat before it leaves  in the unlikely but profitable event that it does.” said Mike van Dulken, of Accendo Markets.

Although oil is having a strong run at the moment some fear there could be a sharp reversal in the price if Opec fails to halt output at their meeting as a positive decision has already been priced into the market.

Publication source
FIBO Group information  FIBO Group reviews

December 9, 2016
Gold is tired of moving in the range
On the daily chart of gold, the bears remain control over the market. As long as quotes are below $ 1,195, their positions are not under threat. The update of the December low can lead to the continuation of downward movement towards $1,116...
December 9, 2016
Oil prices ignored bigger-than expected drop
After an Asian consolidation oil prices moved higher on Thursday. The price slightly grew and reversed the minor part of its losses. The benchmark approached 53.50 post-Europe open. The price stayed below the 50 and 100 EMAs in the 1 hour chart...
December 9, 2016
EURUSD Trades Below Significant Resistance
The Italian referendum weighed on EUR/USD, fell to a year low of 1.0506 on 5th December. It was followed a quick recovery, as a result of the rebound of the Euro after testing the significant support level at 1.0500. Yet it retraced after testing the significant resistance level at 1.0800...

Trade360 Rating
FIBO Group Rating
Tickmill Rating
Grand Capital Rating
OANDA Rating
Vantage FX Rating

Grand Option Rating
24option Rating
Porter Finance Rating
OptionRally Rating
TropicalTrade Rating
OptionsXO Rating