This week, oil prices decrease amid a slowdown in global economic activity. According to the revised OPEC forecasts, this year, the demand for energy will decrease by 6.8 million barrels per day. The April IEA oil market report was even more negative. The International Energy Agency predicts a decline in demand of 9.3 million barrels per day in 2020. The forecasts of OPEC and IEA significantly differ, however, both organizations indicate a strong blow to the demand for "black gold".
In this situation, a significant factor for oil is the possibility of creating reserve accumulations. According to the Secretary General of OPEC, the global shortage of free backup storage can lead to the fact that in the second quarter, 14.7 million barrels per day will be unclaimed in the market. A number of countries have already agreed to increase procurement for strategic stocks.
Today at 19:00 (GMT+2), US Baker Hughes Oil Rig Count report will be released. A likely reduction in drilling will not be able to provide long-term support for the instrument. Market participants are expecting additional cuts from Russia and Saudi Arabia.
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Recommendation: SELL
Entry: 28.30 - 27.80
SL: 29.30
TP: 25.50
TP2: 24.50
Key levels: 22.73, 24.06, 25.52, 26.54, 27.90, 29.01, 30.42, 32.50
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Alternative: BUY-STOP
Entry: 28.65
SL: 27.65
TP: 30.40
Key levels: 22.73, 24.06, 25.52, 26.54, 27.90, 29.01, 30.42, 32.50
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In this situation, a significant factor for oil is the possibility of creating reserve accumulations. According to the Secretary General of OPEC, the global shortage of free backup storage can lead to the fact that in the second quarter, 14.7 million barrels per day will be unclaimed in the market. A number of countries have already agreed to increase procurement for strategic stocks.
Today at 19:00 (GMT+2), US Baker Hughes Oil Rig Count report will be released. A likely reduction in drilling will not be able to provide long-term support for the instrument. Market participants are expecting additional cuts from Russia and Saudi Arabia.
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Recommendation: SELL
Entry: 28.30 - 27.80
SL: 29.30
TP: 25.50
TP2: 24.50
Key levels: 22.73, 24.06, 25.52, 26.54, 27.90, 29.01, 30.42, 32.50
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Alternative: BUY-STOP
Entry: 28.65
SL: 27.65
TP: 30.40
Key levels: 22.73, 24.06, 25.52, 26.54, 27.90, 29.01, 30.42, 32.50
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Trade closed: target reached:
600+ pips profit - target reached