WTI crude oil has had a strong recovery since the record lows last year. A combination of vaccine rollouts and expectations of increasing oil demand have kept oil bought on dip buyers. The seasonal dynamic for WTI is also positive for oil over the last 10 years. From May 04 through to May 20 WTI crude has gained seven times in the last ten years. The average return has been +4.32% with a 164.05% annualised growth rate.

Trade Risks:

  • The main risk to this trade is on a negative risk tone that weighs on oil prices.

  • The emergence of a vaccine-resistant COVID-19 variant will also weigh on stocks.

 

High Risk Investment Warning: Contracts for Difference (‘CFDs’) are complex financial products that are traded on margin. Trading CFDs carries a high degree of risk. It is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent expert advice if necessary and speculate only with funds that you can afford to lose. Please think carefully whether such trading suits you, taking into consideration all the relevant circumstances as well as your personal resources. We do not recommend clients posting their entire account balance to meet margin requirements. Clients can minimise their level of exposure by requesting a change in leverage limit. For more information please refer to HYCM’s Risk Disclosure.

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