23 November, 2016
OPEC will hold the next meeting in Vienna on 30th Nov, discussing about further details regarding output freeze. Due to the market expectations on the likely agreement after the meeting, oil price has rebounded since 14th Nov, after testing the long term significant support line at 43.00. From 14th to 22nd Nov, WTI spot has rebounded 8.86%, trading above the downside uptrend line support.
Fundamentally, the oversupply issue has intensified. According to the monthly report from IEA (International Energy Agency), the output of OPEC in Oct has reached a record high of 33.83 million barrels per day. This figure has surpassed OPEC’s freeze target of 32.5 – 33.0 million barrels per day.
The conflicts of interests between member states is another major difficulty for reaching an unanimous agreement.
The firming of the dollar has restrained the bullish momentum.
If there is no concrete agreement made after the Vienna meeting, then oil prices will likely see a sharp and substantial fall. Nevertheless, before the release of the outcome, the market expectations will likely provide a support to the oil price.
Keep an eye on the EIA Crude Oil Inventories figure, to be released at 15:30 GMT today, it will make an impact on oil prices.
The daily Stochastic Oscillator is above 80, suggesting a retracement.
The current major support line is at 47.50, where the 50 SMA situates.
The near term major resistance zone is between 49.00 – 50.00.
The resistance level is at 48.50, followed by 49.00 and 49.50.
The support line is at 48.00, followed by 47.50 and 47.00.
The British pound hit its lowest level in over 20 months yesterday before recovering in today's trading session on the back of a decision by British Prime...
European stocks slid, following a retreat in Asia, amid growing concerns about a slowdown in China and policy makers steps to address it. The dollar advanced...
October was a brutal month not only for the U.S. IT-Companies. Crude oil prices also had significant and important shifts. After renewing the 4-year highs...
Chinese equities are developing a rebound on Friday, supported by the hopes for progress in China and the US trade negotiations. The telephone...
The U.S. dollar has returned to growth on the comments from the Fed officials about the need of further rates increases this year and next one. At the end...
The collapse of the Turkish lira spreads its toxic influence on the European and EM financial markets. Asian bourses have been losing more than 1% at Monday...
Financial markets rise on positive sentiments about earnings and China's fiscal stimulus. That pushed down the demand for USD, but more likely it is just...
The dollar index reached the one-year highs on Wednesday due to the demand for safe assets. USDX reached level 95.43 on Thursday, breaking the peak levels...
The FOMC minutes highlighted some increased risks to the US economy particularly concerning trade relationships but the view still holds that the Fed should...