OPEC countries are hastily preparing an emergency meeting in connection with the outbreak of coronavirus in China, due to which oil prices fell by 10% in a week.
On the one hand, you might think that they are alarmists, because ten percent volatility for oil is sensitive, but not fatal.
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However, if you look ahead 3-6 months, we will see that against the background of a paralyzed infrastructure in the Asia-Pacific region, nobody needs oil. But nobody is getting it less. Therefore, if quotas are not changed now, the OPEC countries risk being left without buyers.
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Base scenario:
- decline in oil quotes #BRENT c $59 to $53
- reduction of oil prices #WTI from $53 to $47 (Available for trading with us #USOIL)
The critical mark is $50 per barrel #WTI - if prices manage to break through it, there will be a risk of mass liquidation of positions in the futures market, which will fail quotes sharply down.
#fibogroup #coronavirus #china #forex #oil #trader #forextrading #forexbroker
On the one hand, you might think that they are alarmists, because ten percent volatility for oil is sensitive, but not fatal.
=======
However, if you look ahead 3-6 months, we will see that against the background of a paralyzed infrastructure in the Asia-Pacific region, nobody needs oil. But nobody is getting it less. Therefore, if quotas are not changed now, the OPEC countries risk being left without buyers.
=======
Base scenario:
- decline in oil quotes #BRENT c $59 to $53
- reduction of oil prices #WTI from $53 to $47 (Available for trading with us #USOIL)
The critical mark is $50 per barrel #WTI - if prices manage to break through it, there will be a risk of mass liquidation of positions in the futures market, which will fail quotes sharply down.
#fibogroup #coronavirus #china #forex #oil #trader #forextrading #forexbroker