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Crude Oil

Market Opportunities - 06/05/2021

06 May, 2021

The example below uses Contracts For Difference (CFDs). Calculations are only on the price of the specific instrument on the date below and calculations indicate a possible opportunity for profit or loss. No representation or warranty is given as to the accuracy or completeness of this information, consequently any person acting on it does so entirely at their own risk.

Crude Oil weekly downtrend opportunity based On 1.00 Lot Calculation:

  • EVENT: LOCKDOWNS AND COVID RESTRICTIONS: India’s government faced calls for a strict, national lockdown to slow a devastating surge in new coronaviorus cases. INDIA (the third largest oil consumer in the world) experiences a new Covid- 19 pandemic wave (imposing lockdown measures and curfews). The so-called double mutation (Indian variant which is a combination of the UK and South African strains) appears to be very dangerous. New Delhi (India’s Capital) entered a lockdown. India reported more than 382,691 new daily cases on Tuesday.
    India’s oil import may fall by 1 million barrels per day to only 3.1 million barrels per day. India used to import more than 5 million barrels per day before the pandemic. India’s Covid-19 crisis has pummeled demand for transport fuels to the lowest in several months. April sales of gasoline fell to 2.14 million tons, the lowest since August. Sales of diesel, the nation’s most-used fuel, in April were the lowest since October.
    Meanwhile, Japan is facing an increase in cases and a state of emergency will be declared from April 25 to May 11 in cities including Tokyo. Japan is the fourth largest oil importer in the world. Japan is considering extending the state of emergency.
  • EVENT: NUCLEAR DEAL TALKS SEEN “CONSTRUCTIVE” BETWEEN THE U.S AND IRAN (INDIRECT TALKS BETWEEN IRAN AND THE US TO RESUME ON FRIDAY IN VIENNA): Iran said it reached an agreement with parties to the 2015 nuclear deal for the Biden administration to lift a raft of economic sanctions that could propel talks aimed at restoring the historic accord. Iran is expected to bring back around 2.5 million barrels per day of oil once sanctions are lifted. Delegates will this week meet again. The US - Iran indirect talks are expected to resume on Friday (May 7).
  • GLOBAL OIL SUPPLY TO RISE: OPEC+ WILL INCREASE OIL PRODUCTION BY AROUND 2 MILLION BARRELS PER DAY IN THE PERIOD BETWEEN MAY AND JULY 2021. They will reduce overall oil production cuts to 5.8 million barrels per day.

Crude Oil, May 6, 2021
Current Price: 65.60

Crude Oil

Weekly

Trend direction

DOWN

Resistance 3

70.00

Resistance 2

69.00

Resistance 1

68.00

Support 1

63.00

Support 2

61.00

Support 3

60.00

Example of calculation base on weekly trend direction for 1.00 Lot*

Crude Oil

Pivot Points

Resistance 3

Resistance 2

Resistance 1

Support 1

Support 2

Support 3

Profit or loss in $

-4,400.00

-3,400.00

-2,400.00

2,600.00

4,600.00

5,600.00

Profit or loss in €**

-3,657.04

-2,825.89

-1,994.75

2,160.98

3,823.27

4,654.41

Profit or loss in £**

-3,164.44

-2,445.25

-1,726.06

1,869.90

3,308.28

4,027.47

Profit or loss in C$**

-5,385.29

-4,161.36

-2,937.43

3,182.22

5,630.08

6,854.01

* 1.00 lot is equivalent of 1000 units
** Calculations for exchange rate used as of 10:00 a.m. (GMT+1) 06/05/2021
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.
*** You may wish to consider closing your position in profit, even if it is lower than suggested one
**** Trailing stop technique can protect the profit – Ask your Client Manager for more details

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