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Trade Recommendation: Crude Oil

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The trading idea is based on a bearish divergence which gives us a trend reversal signal. The price bounces from 59.00 resistance level and RSI confirms price reversal. MACD supports downward movement. DMI allows opening short trades. We can place pending orders for sell below the uptrend line and 57.50 support level. We’ll entry the market based on a breakout signal. Entry level is 57.20 with stop orders at 59.20 level. Profit targets are 55.00 and 52.00 levels. Don’t risk more than 3% from your deposit in this trade.

Market: Crude Oil (WTI)
Sell: 57.20
Stop: 59.20
Profit Targets: 55.00 and 52.50

Disclaimer: The analyst does not have investments in Crude Oil.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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3.2 stars on average, based on 44 rated postsDmitriy Lavrov is a professional trader, technical analyst and money manager with 10 years trading experience. The main covered markets are Forex, Commodity, Cryptocurrency. Provides personal education for those who are interested in profitable trading. Entries in TOP 10 among TradingView authors.




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Commodities

Oil Prices Plunge as Saudi Arabia Prepares Record Output

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Oil prices declined sharply Monday amid reports that Saudi Arabia is heeding to President Trump’s request to keep the energy market well supplied. OPEC’s kingpin is stepping up its contractual obligations to key Asian markets amid disruptions from Venezuela and Libya, among others.

Oil Prices Drop

Crude futures in New York and London were down more than 4% on Monday. U.S. West Texas Intermediate (WTI) contracts for August settlement bottomed at $67.92 a barrel on the New York Mercantile Exchange, the lowest in nearly a month. Prices would later consolidate at $68.11 a barrel for a decline of $2.90, or 4.1%.

ICE Brent futures for September delivery bottomed at $71.80 a barrel, the lowest in three months. It was last down $3.16, or 4.1%, at $72.17 a barrel.

Saudi Arabia Ramping Up Production

Bloomberg reported Monday that the Saudis are planning to offer extra crude volumes to some of their Asian buyers less than a month after Riyadh convinced fellow OPEC members to crank up daily production levels.

Saudi Arabian Oil Co. has offered extra cargoes of its Arab Extra Light crude to at least two buyers in Asia, Bloomberg said. If approved, the additional supplies will be shipped for August.

Last month, the Organization of the Petroleum Exporting Countries agreed to raise production by 600,000 barrels per day, paving the way for an eventual 1 million-barrel-per-day increase for the cartel and its allies. The Saudis are planing to pump at record levels to offset supply disruptions elsewhere.

OPEC’s secondary sources indicate that the Saudis began ramping up production before the biannual meeting in Vienna on June 22, where cartel members agreed to ease supply restrictions. According to the data, Saudi Arabia boosted its daily output by 405,400 barrels in June compared with May.

Riyadh is also looking to pick up the slack from Iran, which faces renewed sanctions after U.S. President Donald Trump pulled out of the 2015 nuclear deal. The Saudis are said to be targeting crude output at 10.8 million barrels per day, the largest on record.

Trump Succeeding in Reining In Oil Prices

President Trump has criticized OPEC’s policies and has called on producers to raise their output in order to cap runaway price growth.

“Oil prices are too high, OPEC is at it again. Not good!” Trump tweeted in June. Earlier this month, he said: “The OPEC Monopoly must remember that gas prices are up & they are doing little to help. If anything, they are driving prices higher as the United States defends many of their members for very little $’s. This must be a two way street. REDUCE PRICING NOW!”

With political pressure to rein in oil prices intensifying ahead of the midterm elections, the Trump administration has announced it is considering tapping the nation’s emergency crude supply. The Strategic Petroleum Reserve currently houses a total inventory of 660 million crude barrels, though options under review suggest that figure is between 5 million barrels and 30 million barrels lower.

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 499 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




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Commodities

Brent Crude Oil: $100 Per Barrel Is In Sight

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Crude oil has been moving steadily higher for months, despite a recent short-term blip, and it may not be long before we are looking at triple-digit prices once again. Eighty-dollar Brent is the most recent target, reflecting the highest level the commodity has seen in years and the closest its come to 2008 record highs of $150 per barrel.

And while market forces aka Saudi Arabia may be doing what they can to control the price, there is a wildcard that could send oil futures soaring to near $100 per barrel once again, and according to a market strategist on CNBC, it’s Venezuela.

Bob Parker of Quilvest Wealth Management said on the business network that Venezuela holds the key to unlocking near-$100 oil prices once again. If Venezuela, which is mired in economic depression, were to bring oil production to a total halt, it could serve as an impetus to send crude oil futures soaring to levels not witnessed in years.

A combination of production cuts inspired by OPEC and rising demand around the world has thrust the oil price to the $80 per barrel level in May, back to 2014 levels. Surplus worries have taken some steam out of the rally, at least in the short-term, as the US has been ramping up production. But Saudi Arabia has still been calling the global shots, and they like oil in the $70-$80 range.

The Wall Street Journal

Parker believes that the oil kingpins — Saudia Arabia, other OPEC nations and Russia — have reached their goal to “clear this industry from overhang from the oil market.” It’s been on again, off again for production cues, and if they had their way, oil prices would persist at current levels.

“I think what they are concerned about is that they ideally would like to avoid a spike in the oil price, let’s say towards $100 a barrel, because they are very sensitive to the fact that a spike would then lead to a generalized global downturn,” Parker told CNBC.

Venezuela Wildcard

Energy is the heart of the Venezuelan economy, and therefore it’s the industry that’s been hit the hardest. It’s been displaced by Colombia for oil exports to the U.S., and production has been falling sharply.

Latin American crude production has been slashed by some 40% in the past three years and is currently hovering at about 1.4 million barrels per day amid Venezuela’s hyperinflation and food crisis. If Venezuelan production were to come to a complete halt, and there’s no indication that the worst is over, it could thrust crude futures back to triple-digit- territory.

It’s not just one market strategist that predicts $100 per barrel oil. RBC’s Helima Croft similarly believes that a perfect storm could send Brent up to lofty levels, with the Venezuelan economic demise the deciding factor.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 23 rated postsGerelyn has been covering ICOs and the cryptocurrency market since mid-2017. She's also reported on fintech more broadly in addition to asset management, having previously specialized in institutional investing. She owns some BTC and ETH.




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Oil Prices Post Biggest Drop in a Year as Russia, OPEC Weigh Abandoning Output Deal

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Oil prices sold off Friday at their fastest pace in a year after major energy producers said they may soon begin lowering production limits.

Energy Ministers Weigh Easing Output Caps

A group of two-dozen producer nations are considering a gradual exit from an output deal put in place last year to rebalance an oversupplied crude market. Under the deal, Russia, OPEC and others agreed to reduce crude supplies by 1.8 million barrels per day.

Russia was especially vocal about lowering and eventually abandoning output quotas in support of a balanced market after Moscow’s energy minister met with his Saudi counterpart in St. Petersburg.

“The moment is coming when we should consider assessing ways to exit the deal very seriously and gradually ease quotas on output cuts,” Russian energy minister Alexander Novak said, according to Reuters.

Russian President Vladimir Putin also said Friday his country does not support runaway oil prices, a sign that the world’s largest energy producer was prepared to ramp up production soon.

“We’re not interested in an endless rise in the price of energy and oil,” Putin said in St. Petersburg on Friday. “I would say we’re perfectly happy with $60 a barrel. Whatever is above that can lead to certain problems for consumers, which also isn’t good for producers.”

The Russian leader echoed previous comments made by Iranian officials, who indicated that a range of $60 to $65 a barrel was fair market value for crude. The Saudis, meanwhile, were said to be targeting prices above $80 a barrel.

OPEC and its allies are planning to gather in their Vienna headquarters June 22 to discuss a new output deal. Output will most likely increase, though the details of the production rise remain unclear.

Oil Prices Sink

U.S. West Texas Intermediate (WTI) futures plunged 4.2% to $67.70 a barrel, the biggest fall since June 2017. The contract settled at worst level in over three weeks.

Brent crude fell 3.1% to $76.39 a barrel, its lowest since May 8. The international futures benchmark traded above $80 a barrel last week for the first time since 2014.

Energy shares were dragged along for the ride, as the sector fell 2.6%. Dow industrials Chevron Corp and Exxon Mobil Corp fell 3.5% and 1.9%, respectively.

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

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4.6 stars on average, based on 499 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




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