FXTM information and reviews
FXTM
95%
OctaFX information and reviews
OctaFX
94%
XM information and reviews
XM
93%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
90%
HFM information and reviews
HFM
89%

Crude Oil Is Afraid of Geopolitics


1 August 2022

The commodity sector remains rather tense on Monday; Brent is trading at $102.75. Global geopolitics is what investors are focused on right now. Any complications in this area muddy the water one way or another, and it’s bad news. Last weekend, the Kosovo situation escalated – a gas pipeline “Balkan Stream” is going through Serbia, which doesn’t recognise the independence of Kosovo. The pipeline delivers natural gas from “TurkStream” to Hungary.

Later this week, OPEC and OPECF+ will have meetings. The OPEC+ agreement is ending in August and the organisations are set to discuss options to increase oil production. First of all, it depends on Saudi Arabia, a country that still has the potential for oil extraction expansion. However, Saudis don’t seem to be interested in it.

The latest report from Baker Hughes showed that over the past week, the Oil Rig Count in the US gained 6 units, up to 605. In Canada, the indicator increased by 13 units, up to 137. On the H4 chart, Brent is forming the third ascending wave with the target at 111.55 and may later correct down to 106.16. After that, the instrument may resume trading upwards with the short-term target at 118.80. From the technical point of view, this scenario is confirmed by the MACD Oscillator: its signal line is moving above 0 inside the histogram area. Both the line and the price chart may yet continue to move upwards.

Brent H4 chart

As we can see in the H1 chart, after finishing the descending correctional structure at 106.16, Brent is consolidating above this level. Possibly, the asset may break the range to the upside and start another growth with the target at 111.55, or even extends this structure up to 118.70. From the technical point of view, this idea is confirmed by the Stochastic Oscillator: after breaking 20, its signal line is heading towards 50. Later, the line may break the latter level and continue growing to reach 80.

Brent H1 chart

By RoboForex Analytical Department
#source

Share:


Related

Equities begin the last quarter on positive note; RBA delivers smaller hike
Equities begin the last quarter on positive note; RBA delivers smaller hike

Equities finished the first trading day of this year’s final quarter on a positive note, with all three of Wall Street’s main indices gaining more than 2% as Treasury yields pulled back on the larger-than-expected...

4 Oct 2022

Yen flirts with intervention level, UK budget U-turn lifts pound
Yen flirts with intervention level, UK budget U-turn lifts pound

The third quarter got off to a subdued start on Monday as there was no respite for equity markets from the worsening economic landscape globally, though major currencies were able to bounce back...

3 Oct 2022

Bank of England intervenes to calm market stress
Bank of England intervenes to calm market stress

The Bank of England hit the panic button on Wednesday, announcing it will step into the UK government debt market to buy £65bn in bonds over the next two weeks to restore stability...

29 Sep 2022

Dollar goes ballistic, sterling licks wounds, stocks slide
Dollar goes ballistic, sterling licks wounds, stocks slide

A selloff in global bond markets has snowballed into a meltdown, sending shockwaves across every asset class. Central banks are still on a crusade to vanquish inflation and governments...

28 Sep 2022

Brent Dropped to Its February Lows
Brent Dropped to Its February Lows

The commodity market is now experiencing a huge stress due to concerns of the reduction in demand for energies. Early in the week, Brent dropped to $85.35 and no other negative factors have...

27 Sep 2022

Pound rebounds on BoE bets; Dow enters bear market
Pound rebounds on BoE bets; Dow enters bear market

Sterling rebounds as traders ramp up BoE bets - Rate hike expectations keep hurting equities - Oil and gold claw back some losses after hitting new lows

27 Sep 2022


Forex Forecasts

IronFX information and reviews
IronFX
88%
FXCM information and reviews
FXCM
87%
NordFX information and reviews
NordFX
85%
Vantage information and reviews
Vantage
84%
FP Markets information and reviews
FP Markets
81%
RoboForex information and reviews
RoboForex
81%

© 2006-2022 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.