There is nothing much that I can see in the oil market at the moment that would give the price much of an upward movement except perhaps further activity in the Middle East. With the greenback strong after the US inflation figures, the rig count easing and the speculators cutting long positions technically the market looks sated. Overall rigs were down 3 last week with a net fall of only 1 in oil with new rigs actually appearing in one or two places, I get the firm impression that 6o bucks for WTI is reasonably comfortable for a lot of domestic producers. As to those speculative positions the last two weeks have seen a retreat from the highs with last week showing a fall of 7.6% in WTI length and 13.4% in Brent.
Added to that were the comments made at the weekend by the Iranian Oil Minister Bijan Zangareh who stated that at the upcoming Opec meeting the cartel would ‘maintain production’. Whilst it is likely to maintain the status quo, there are still some stories doing the rounds that an across the board deal between Opec and non-Opec producers is being put together but dont hold your breath.
The only other possible reason for getting really optimistic at the moment are the reasonably positive signs of a global pick-up in the demand for products which has fed through to demand for crude thus offsetting any possible weakness in the market.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
EUR/USD stabilizes near 1.0800 as trading action turns subdued
EUR/USD holds steady near 1.0800 on Thursday and remains on track to end the day in negative territory following upbeat macroeconomic data releases from the US. The action in financial markets turn subdued as trading volumes thin out heading into Easter holiday.
GBP/USD extends sideways grind above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth help the USD stay resilient against its rivals and limits the pair's upside.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.