Given the current Trumponomics with Oil, the chances of Oil falling off of a cliff seems slim.
The 4H chart of USOIL shows a slow regression trend at the moment. However, if the trend breaks toward the top the next resistance level is at a $28.0 range.
This will happen in the likely case of US-Russia agreement of joining OPEC+ and I believe even then Oil markets will still find it hard to break that support region due to oversupply of over 20-25 MBoed (Millions of Barrels per day) that exists due to COVID-19 large scale shutdowns.
Note: Current world Oil Production is 100+ MBoed and Current consumption is 80+ MBoed. Cuts of even 5 MBoed won't do much to help the markets in the short-term.
The opportunity will be short-term play between this regression trend until a clear change in Fundamentals which will either lift it to $28.0 range or go to $14.0 on the downside as a lot of traders have pointed out looking at a very long-term scenario.
Please feel free to share your opinions and thoughts about the markets in the comments sections below.
The 4H chart of USOIL shows a slow regression trend at the moment. However, if the trend breaks toward the top the next resistance level is at a $28.0 range.
This will happen in the likely case of US-Russia agreement of joining OPEC+ and I believe even then Oil markets will still find it hard to break that support region due to oversupply of over 20-25 MBoed (Millions of Barrels per day) that exists due to COVID-19 large scale shutdowns.
Note: Current world Oil Production is 100+ MBoed and Current consumption is 80+ MBoed. Cuts of even 5 MBoed won't do much to help the markets in the short-term.
The opportunity will be short-term play between this regression trend until a clear change in Fundamentals which will either lift it to $28.0 range or go to $14.0 on the downside as a lot of traders have pointed out looking at a very long-term scenario.
Please feel free to share your opinions and thoughts about the markets in the comments sections below.