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Crude Oil Daily Market Analysis
#1

Crude oil is a very important commodity in high demand globally. Crude oil is highly susceptible to breaking news and events especially in Middle East. Right now crude oil price is hovering around $65 per barrel. I have posted the screenshot below that you should take a look at:

[Image: USOIL.H4.png]


Now do you see the red arrow in the above screenshot of US Crude OIL H4 chart? This red arrow is the time when US President Donald Trump announced that US will rescind US IRAN Nuclear deal and reimpose sanctions. You can see in the above screenshot first the market got jittery about the outcome of this annoucement. Before the announcement many analysts were skeptical that US President will rescind the nuclear deal. So crude  oil price went down. But when the announcement was made crude oil prices jumped and went above $71 per barrel. This was the start of the last month around 8th May.

Today crude oil prices are hovering around $65 per barrel. So prices have go down a little bit as Saudi Arabia has started pumping more oil. The point was to make you realize that the commodities market is highly susceptible to breaking news. Breaking news causes a lot of volatility and as a trader you should understand how to manage this volatility and profit from it.

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#2

Last time I wrote the post, crude oil price was hovering around $65 per barrel. Today crude oil is trading around $45 per barrel. This is after a few months. Oil is a very important commodity that drives the global economy. High price of oil is inflationary for the global economy. There are many countries that cannot afford high crude oil prices as it creates balance of payment problems for those countries. Below is the crude oil chart:
[Image: OIL_ChartH411.png]
As you can see crude oil price fell from around $55 per barrel to around $45 per barrel in the above chart. This is crude oil H4 chart. Crude oil is a good commodity for trend trading. Once a trend starts in the crude oil market, it can persist for many months. Crude oil market is highly susceptible to the global political events especially the political events taking place in the Middle East.  An effort has started in the global economy to reduce the dependence on crude oil by switching the cars and other vehicles to electric power. It is too early to make a guess when this start reducing the dependence on crude oil.

Just keep this in mind, crude oil is the most in demand commodity as many by products are made from crude oil that includes diesel, wax, lubricants and plastics and many other petrochemicals. So even introducing electric cars can only make a dent in the market demand for crude oil by a small amount. Crude oil outlook for the next few months something like upto six months is bearish and price will hover between $40 and $50 per barrel.

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