In this article, we will cover Exness opinions alongside reporting from The Wall Street Journal, which is a commercial partner of Exness. Oil traders are getting mixed messages from mainstream media, and the technical charts aren’t much clearer. With more production cuts looming and recession in the air, where is oil now, and where is it going?
Oil Drops For Second Day on Fresh Signs of Demand Weakness
0743 GMT – Oil prices are lower for a second day as demand concerns dominate sentiment. Brent crude oil is down 0.8% at $75.67 a barrel while WTI declines 0.8% to $71.17 a barrel. Chinese trade data showed a slump in the nation’s exports and imports, adding to investor worries about the nation’s oil demand. Meanwhile, the Energy Information Administration also said U.S. oil demand will rise at a slower pace this year than expected while its crude output will rise faster. That adds to growing concerns about demand that have undermined Saudi efforts to halt a fall in oil prices by slashing output.
OPEC only cuts to keep the price stable, not to hike. Having said that, the last 5 decades are littered with broken promises of price stabilization. If OPEC clients, the thirsty nations of the world, suspected ulterior motives for production cuts other than price stabilization, there wouldn’t be silence. Historically, when oil is holding within a price range of $76 BBL and $90 BBL, a range easily identified on a chart, you rarely hear about supply and demand shortages. But whenever prices go south of that range, OPEC takes out the scissors.
Worries of recessionary influences in July may well drag oil prices down again, but OPEC has already forewarned of countering production cuts next month. We may see some very interesting price actions for both long and short oil traders in the coming week. Consider following oil news and activating price alerts on your Exness Trade app. The mobile app supports Exness Stop Out Protection, which was designed to guard a trader's equity against unexpected and extreme price hikes and crashes.
If you are planning range trading USOIL in June and July, Exness Stop Out Protection can reduce stop outs by as much as 30%, but you’ll need to set your equity, leverage, and trading budget tight for this one. Keep your finger on the OPEC pulse, and there’s no better way to do that than on your mobile.
