During the Asian trading session, oil prices rose slightly amid reports that Russia and Saudi Arabia may continue to reduce production.
The two largest oil producers announced their readiness to further reduce production by almost 10 million barrels, in addition to the earlier OPEC + agreement to reduce production by 9.7 million barrels.
A positive impact on the market is also exerted by statements by some countries to increase oil purchases for their strategic reserves.
Despite local price increases and investor optimism, experts forecast that the market will remain under pressure until the global economy starts normal operation. According to OPEC forecasts, energy demand will fall to its lowest level in the last three decades against the backdrop of the coronavirus pandemic. Earlier, the International Energy Agency stated that 2020 could be the worst year in the history of the oil market.
Regarding the chart, most active trading so far takes place in the range between the levels of 25.50 and 26.90. The priority remains the scenario with the price coming out of flat down. The medium-term goal is the level of 23.20.
The main scenario - a breakdown of support at the level of 25.50 and a decline in the direction of 23.20.
An alternative scenario - consolidation in the range of 25.50-26.90.
The fundamental outlook is moderately negative. We still prioritize shorts. Entry points are to be sought after near the level of 26.90.
Only from April 12, 2021, to May 14, 2021, 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 […]
FortFS wishes all traders a Happy Chinese New Year! Only from February 8 to March 12, 2021, we reduce spreads for the 4 most popular trading pairs. New values*: EURUSDf: 0.8 GBPUSDf: 0.9 USDJPYf: 1.0 XAUUSDf: 3.5 *These values are valid only for FLEX accounts Hurry up to take advantage of the offer! Learn more about spreads: https://www.fortfs.com/clients/specifications