Crude oil inventories have the sharpest decline in 8 months. With a forecast of 0.309M barrels of Crude Oil Inventories the actual figure was -9.589. On top of the dollar weakness this has caused WTI oil futures to jump above 60$.
Oil is trading above the 200EMA which will act as a strong level of support. Fundamental news that are affecting the price of oil is the fact that Russia and OPEC are doing so much to decrease output throughout the world. According to OPEC+ member countries are going to reduce the output of oil by 1.2 million barrels in 2019. Also, the cartel cancelled its meeting in April, meaning that they will keep these production cuts all through the slow season of summer up until June, when they will decide future action. We believe that OPEC and its allies will keep this policy all the way through the year.
A possible entry point for long position presents itself if price will dip down to the level of the 200EMA at 58.73. Entries can be made as low as 58.00 with stop losses located below 57.25.
Oil is trading above the 200EMA which will act as a strong level of support. Fundamental news that are affecting the price of oil is the fact that Russia and OPEC are doing so much to decrease output throughout the world. According to OPEC+ member countries are going to reduce the output of oil by 1.2 million barrels in 2019. Also, the cartel cancelled its meeting in April, meaning that they will keep these production cuts all through the slow season of summer up until June, when they will decide future action. We believe that OPEC and its allies will keep this policy all the way through the year.
A possible entry point for long position presents itself if price will dip down to the level of the 200EMA at 58.73. Entries can be made as low as 58.00 with stop losses located below 57.25.
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