Is it the end of the oil rally?
Since the end of September, we see the continued oil rally. In less than two weeks, oil prices have risen more than 10%. However, since the very beginning traders treated the idea of the oil prices growth with caution. The reason: there aren't fundamental and technical factors.
At the end of last week Russian Energy Minister Alexander Novak said that the agreements concerning the freezing of oil production will not be achieved. This statement gave the market downward momentum, last Friday (Oct. 7) the price of West Texas Intermediate (WTI) decreased by 98 cents. Besides the statement, there are other drivers that can add to the negative impact to Mr. Novak’s statement. Among them, there is the publication of the of the official monthly OPEC report. Its figures clearly demonstrate that here is no decrease in the level of black gold mining. Moreover, in September the information, that Russia and Saudi Arabia will reach new records in oil production, repeatedly published. This fact could impact negatively on dynamics of prices.
Popular drivers could become data concerning oil reserves in the USD, that are published on Tuesday by the American Petroleum Institute (API), while on Thursday these data are published by US Department of Energy. Traditionally, these data show a reduction in oil reserves in America. This fact can create a positive dynamic of prices.
The attention of speculators and investors again focused on events in the oil industry. That means that liquidity’s come back to the oil marker and, in any scenario, we are waiting for a very interesting "Oil Week.»
Group of companies FIBO GROUP gives opportunity to implement any investment strategies, including strategies with the use of oil assets.
Avaliable for trading:
1) Canada Raw Materials price (look for USD/CAD in the list of the instruments)
2) Contract for American oil (USOIL).
Since the end of September, we see the continued oil rally. In less than two weeks, oil prices have risen more than 10%. However, since the very beginning traders treated the idea of the oil prices growth with caution. The reason: there aren't fundamental and technical factors.
At the end of last week Russian Energy Minister Alexander Novak said that the agreements concerning the freezing of oil production will not be achieved. This statement gave the market downward momentum, last Friday (Oct. 7) the price of West Texas Intermediate (WTI) decreased by 98 cents. Besides the statement, there are other drivers that can add to the negative impact to Mr. Novak’s statement. Among them, there is the publication of the of the official monthly OPEC report. Its figures clearly demonstrate that here is no decrease in the level of black gold mining. Moreover, in September the information, that Russia and Saudi Arabia will reach new records in oil production, repeatedly published. This fact could impact negatively on dynamics of prices.
Popular drivers could become data concerning oil reserves in the USD, that are published on Tuesday by the American Petroleum Institute (API), while on Thursday these data are published by US Department of Energy. Traditionally, these data show a reduction in oil reserves in America. This fact can create a positive dynamic of prices.
The attention of speculators and investors again focused on events in the oil industry. That means that liquidity’s come back to the oil marker and, in any scenario, we are waiting for a very interesting "Oil Week.»
Group of companies FIBO GROUP gives opportunity to implement any investment strategies, including strategies with the use of oil assets.
Avaliable for trading:
1) Canada Raw Materials price (look for USD/CAD in the list of the instruments)
2) Contract for American oil (USOIL).