2024-06-06 • Updated
Analysts of HSBC revealed their outlook on energy prices. They expected the gas price to be “exceptionally high” this winter because a global shortage pushed some energy firms to close. Supply is going to be weak, while demand will rise sharply in the winter season, pushing gas prices even higher. According to Bloomberg, ‘European gas prices surged by almost 500% in the past year and are trading near record’. The high energy prices in turn forced producers in Europe to decrease production, which can lead to higher costs for farmers and potentially add to global food inflation.
Source: Bloomberg
A combo of strong demand and poor supply has sent oil prices to the high unseen since 2018. This winter is going to be good for oil suppliers but not for its consumers, who are switching from gas to cheaper oil. Vitol Group, the world’s largest oil trader, anticipates oil demand to rise by half a million barrels a day this winter. It will support oil prices.
There are oil and gas trading instruments that are becoming more popular among traders: XBR/USD (Brent oil), XTI/USD (WTI oil), and XNG/USD (gas).
Just look at the XBR/USD. It has opened today with a gap up, getting closer to the psychological level of $80.00 a barrel. The jump above this mark will open the doors towards the three-year high of $84.00. Support levels are $75.00 and $70.00.
XTI/USD tends to move together with XBR/USD, but it has outrun its peer. It has already approached the three-year high, which is at $75.00. WE might expect a short pullback before oil prices will continue rallying up. When oil closes above $75.00, it may surge to $80.00. Support levels are $70.00 and $65.00.
A cup and handle pattern has almost occurred on the XNG/USD chart. If gas breaks out the mid-September high of $5.50, it may rocket to 5.70! Support levels are at the 50 and 100-period moving averages: $5.15 and $5.00.
Crude oil futures surged on Monday due to disruptions in Russian refining capacity caused by Ukrainian drone strikes and Moscow's decision to cut output to comply with OPEC+ targets. The West Texas Intermediate (WTI) contract for May settled at $81.95 a barrel, up $1.32, while the Brent contract for May settled at $86.57 a barrel, also up $1.32. Russia instructed...
Brent oil is currently on a bullish trend, facing resistance near $84 and supported by the 200-day EMA. Breaking above this level could lead to a climb towards $90. Short-term support is observed around $80, backed by the 50-day EMA. As summer approaches and travel increases, crude oil tends to benefit from seasonal patterns. Despite temporary setbacks, buying...
Amid uncertainty driven by geopolitical events, oil prices surged to record highs. However, a correction in oil prices is observed with a gradual improvement in the situation in the Middle East and an increase in demand. The question facing investors is whether there are prerequisites for further price growth or if everything depends on the dynamics of the political landscape. In this article, we will explore the impact of recent events on the global oil market and the prospects for developing this crucial commodity sector.
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
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Don’t waste your time – keep track of how NFP affects the US dollar and profit!
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