Oil may be in for big reversal

10 February, 2017

The oil price rose for a 2nd straight day on Thursday on the back of a fall in US gasoline inventories, but some are starting to predict that a reversal of fortunes is just around the corner.

At 2.55pm (GMT) the oil price was trading at $53.02 a barrel down from $52.36 in yesterday’s trading.

The U.S. Energy Information Administration reported on Wednesday that gasoline inventories fell by 869,000 barrels last week against expectations for a for an additional 1.1 million barrels.

The number pushed the oil price higher, but some such as Boris Schlossberg, BK Asset Management's managing director of foreign exchange strategy noted that at such prices ,oil will struggle to find customers,

"I think oil is in a very dangerous zone now precisely because demand is not there," he said.

He also predicted that $50 a barrel was a critical point, and if oil moves down towards there then breaks through, the commodity could be in for a big fall,

"The irony of this whole thing is that OPEC cuts are holding, but the demand is not there.And the longer oil wallows at this $52 level, the more likely it's actually going to go to the downside. And if it trips to $50 a barrel stops, I think it could really tumble very quickly. So I think we're in a perilous territory," Mr Schlossberg added.

Some other factors that may affect the oil price in the nearest future are the amount of oil rigs coming on line in the US, chasing the $50 plus a barrel prices as well as Donald Trump’s policy, if it eventuates, to open up Federal lands for oil drilling which analysts predict will flood the market.


Source link  
Rates in Australia going up or down?

The Australian dollar can’t seem to find a direction in today’s trading session after yesterday’s losses following the latest minutes from the Reserve...

Wage growth boosts pound

The British pound received another boost today against its US counterpart after a round of solid local data which follow’s on from news earlier in the week...

Gold remained largely range bound

Gold has remained largely range bound over the past 4 trading sessions but it seems as the today there is momentum gaining to the upside and the formation...


Stagflation a threat to US dollar

The US dollar jumped suddenly after yesterday’s release of better than expected inflation data and then suddenly reversed into negative territory which...

Gold made a run for the $1365 mark

If we look at the arrow on the weekly gold price chart we can see that a resistance point that was first encountered in around august of last year...

Gold awaits direction of Stockmarket

The gold price has remained in a tight range over the last 3 trading sessions as equity markets in the US continue to swing wildly and are now down...


US dollar in for a tough year

The US dollar finished off 2017 mostly weaker against the major currencies despite 3 rate hikes from the US Federal Reserve and although...

RBA misleads investors on AUD

The Australian dollar has dropped sharply in today's Asian trading session on the back of disappointing data and throws into question yesterday...

Brexit doubts pressure pound

The British pound has enjoyed a good run against its US counterpart ever since rumors spread that the EU and the UK were close to reaching a deal...


In the past 24 hours Bitcoin has lost -1.57% and reached $9177.31. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -1.2229% and is now at $1.2229. Start trading and making money on Forex today.

In the past 7 days Ethereum has gained 23.25% and is now at $633.402. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Daily Forex Market Reviews


Forex Currencies Forecasts


Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets90%
2FXTMFXTM87%
3HYCMHYCM85%
4FxProFxPro84%
5FIBO GroupFIBO Group82%
6FXCMFXCM70%
7XMXM68%
8Fort Financial ServicesFort Financial Services67%
9Alfa-ForexAlfa-Forex66%
10HotForexHotForex66%
  


Share: