This morning oil prices rose more than 1%  ahead of an OPEC meeting which is expected to push the group and its allies including Russia to agree to further output cuts to support the market. But will that be enough to support oil prices in the long term? Given the overall downtrend in oil prices because of the rapid spread of the coronavirus which has been weighing on the transport industry, we would expect oil prices to dip lower again, sooner rather than later.

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Oil could therefore soon weaken further, especially if the demand in travelling stays weak and economic activity remains low. Before the OPEC meeting, we like to sell USOIL at 46.70 with SL at 48.60 and TP at 44.90.

Risk Warning: CFDs are complex instruments and come with a high risk of losing your invested capital due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

The content of this material and/or any information provided by BDSwiss Group should not be in any way construed, either explicitly or implicitly, directly or indirectly, as investment advice, recommendation or suggestion of an investment strategy with respect to a financial instrument and it is not intended to provide a sufficient basis on which to make investment decisions, in any manner whatsoever. Any information, views or opinions presented in this material have been obtained or derived from sources believed by the BDSwiss Research Department to be reliable, but BDSwiss makes no representation as to their accuracy or completeness. BDSwiss Group accepts no liability for losses arising from the use of this data and information. The data and information contained herein are for background purposes only and do not purport to be full or complete.

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