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

Oil is still constrained in a flat

Oil prices declined on Tuesday amid a moderate recovery of USD and continuing concerns about a recovery in energy demand.

 

Investors continue to follow the debate in the US Senate on the formation of a new economic assistance program, which could amount to 1 trillion dollars. Many experts believe that the adoption of a new package of economic stimulus measures will put pressure on USD and contribute to the growth of the American stock and oil market.

 

The main problem for the oil market is the fear of oversupply. Industry statistics released last week showed that the worsening epidemiological situation in the country has led to a decrease in fuel demand in the United States. Investors will be keeping a close eye on the API data released today and the EIA's weekly report due tomorrow.

 

Oil has been trading above the $ 40 mark for quite a long time, which may be a signal for many American shale oil producers to increase production. The United States does not participate in the OPEC + agreement, therefore, it can move to increasing production after stabilizing prices at a level acceptable to oil companies.

 

Regarding the chart, trading continues in a horizontal range, the boundaries of which can be designated by the levels 40.75-41.75. Today, we consider the scenario with the further development of the flat trend as a priority.

 

  • Resistance levels: 41.75, 42.30, 43.75.

 

  • Support levels: 40.75, 38.70, 37.00.

 

The main scenario - a consolidation in the range of 40.75-41.75.

 

Alternative scenario - a breakdown of resistance at 41.75 and growth above 42.30.

 

The current fundamental outlook is neutral. We would consider both longs and shorts from the borders of the flat at 40.75-41.75.

Latest news

Reduced spreads for popular pairs

2021-02-11 15:07:39

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

Deposits are even more profitable now!

2021-02-01 11:29:44

Only until February 26, special deposit rates* are available for all traders in Malaysia, Indonesia, Vietnam and Thailand: 3.6 MYR = 1 USD 10 000 IDR = 1 USD 20 000 VND = 1 USD 25 THB = 1 USD *Only Local bank deposit method is included Hurry up to take advantage of the offer until […]