flag-gb flag-my flag-zh flag-id flag-th flag-vi

Oil prices decrease due to news from Saudi Arabia

Oil is being traded in different directions on Wednesday. During the Asian session, trading took place in the green zone. With the beginning of the European trading session, the price resumed its downward movement. Pressure on the price was exerted by reports that the Saudi Ministry of Energy ordered Saudi Aramco to increase production from 12 million barrels per day to 13 million barrels. CEO Amin Nasser said today that the company will make every effort to complete this task. Nasser also noted that in April Saudi Aramco will increase the volume of oil supplies to the market up to 12.3 million barrels per day.

 

The confrontation between Saudi Arabia and Russia is growing, which is a serious bearish factor for the oil market. A further increase in energy supplies amid a slowdown in the global economy will increase the imbalance in the market. Excess supply in conditions of limited demand will further reduce oil prices.

 

Regarding the economic calendar, the main focus should be on the weekly US Department of Energy inventory data. The growth of reserves is expected to reach 2.3 million barrels.

 

A downward wave is developing on the chart after the bulls could not gain a foothold above the 35.70 mark. The intraday target for bears is the level of 32.75. In the medium term, we can expect a decrease to 30.50. Upward correctional movement can only be expected after the price fixation above the level of 35.70.

 

  • Resistance levels: 35.70, 37.00, 40.50.

 

  • Support levels: 32.75, 30.50, 27.00.

 

The main scenario - a decline towards 32.75.

 

An alternative scenario - a breakdown of resistance at the level of 35.70 and an increase towards 37.00.

 

The fundamental outlook is neutral. We consider shorts from the level of 35.70.

Latest news

No Deposit Bonus 100 USD – available for 3 days only!

2020-11-23 08:44:40

Only from 23 to 25 of November, the largest no deposit bonus 100 USD is available for all Forex traders! πŸ† Bonus details: 100 USD maximum withdrawal 75 lots of required trading turnover 2 weeks to try all of the trading conditions Available for cent accounts πŸ“ How to get the bonus: 1) Register an […]

Deposit Bonus 200%

2020-11-03 08:45:33

Only from November 02nd to December 04th, 2020, Deposit Bonus 200% is available for all FortFS clients! Use the advantage to engage for the unique offer within a limited period: activate the deposit bonus and get up to 200% on the deposit amount on your trading account! How to get a Deposit Bonus of 200%? […]