CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Crude Oil

Market Opportunities - 09/06/2021

09 June, 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 uptrend opportunity based On 1.00 Lot Calculation:

  • VACCINATION PROCESS EXPANDS GLOBALLY WITH 2.19 BILLION DOSES BEING ADMINISTERED SO FAR AT AN AVEARGE DAILY RATE OF 35.4 MILLION DOSES. The expanding vaccination process keeps chances high that more and more countries will reopen into the summer, which could increase travelling and therefore fuel consumption could rise. This tends to support oil prices.
  • EUROPE and the UK are starting to reopen gradually, which could boost oil consumption expectations for the summer. Traffic in Europe was as busy as 2019 for the first time since the pandemic. Earlier, the EU said that they would open borders for fully vaccinated people, which should increase volume of travelling throughout the summer. The UK, on the other hand, is expected to fully reopen by June 21, 2021.
  • OIL DEMAND IN CHINA CONTINUED TO RECOVER: Analysts expect crude oil imports to rise to 11- 11.5 million barrels per day in the coming period, which would be up from May’s 9.86 million barrels per day.
  • USA Oil and Gasoline demand continued to recover as the driving season has already begun with Memorial Day May 31: US Oil Inventory (Week May 31 – June 4): The American Petroleum Institute (API) estimated on a crude oil inventory DECREASE of 2.108 million barrels for the last week. Analysts had predicted an inventory decrease of 2.04 million barrels.
  • INDIA Covid-19 cases continued to fall printing a number below 100K on June 8 and all that compared to its peak of more than 400K in early May. As the number continues to fall, the authorities could be expected to relax some of their pandemic restrictions, which could be expected to increase oil and gasoline consumption. INDIA is the third largest oil consumer and importer in the world, which used to import more than 5 million barrel per day.
  • IRAN SAYS THAT NUCLEAR DEAL NEGOTIATIONS WILL NEED FURTHER ROUND, WHICH PREVENTS IRAN FROM INCREASING OIL EXPORTS (SUPPLY) SHORT TERM: World powers (US including) and Iran will continue to talk. Ali Rabiei, spokesman for Iran’s government, said that negotiators now expect to finalize a deal in August, when President Rouhani’s tenure ends. Iran will hold presidential election on June 18, 2021. Citigroup analysts do not expect that Iranian oil will come back before Q4, 2021.
  • ANALYST OPINION (GOLDMAN SACHS/CITOGROUP/UBS): Goldman Sachs expects oil demand to rise by 5.2 million barrels per day in the next few months. Crude oil price estimate: ~$77 a barrel. Citigroup also expects oil prices to rise during the summer, setting a price target for $75 a barrel. UBS forecasts $72 a barrel.

Crude Oil, June 9, 2021
Current Price: 70.00

Crude Oil

Weekly

Trend direction

UP

Resistance 3

77.00

Resistance 2

75.00

Resistance 1

73.00

Support 1

67.10

Support 2

66.00

Support 3

65.00

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 $

7,000.00

5,000.00

3,000.00

-2,900.00

-4,000.00

-5,000.00

Profit or loss in €**

5,747.98

4,105.70

2,463.42

-2,381.30

-3,284.56

-4,105.70

Profit or loss in £**

4,940.92

3,529.23

2,117.54

-2,046.95

-2,823.38

-3,529.23

Profit or loss in C$**

8,465.52

6,046.80

3,628.08

-3,507.14

-4,837.44

-6,046.80

* 1.00 lot is equivalent of 1000 units
** Calculations for exchange rate used as of 9:00 a.m. (GMT+1) 09/06/2021
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

Share It With Your Network
Crude OIL Chart
Update Time: -
Highest
Lowest
1M 5M H D W
Prices are loading..
Ready for trading?Start Now