Crude Oil weekly uptrend opportunity based On 1.00 Lot Calculation:
- EVENT (OPEC on DECEMBER 1 at 13:00 GMT and OPEC+ on DECEMBER 2 at 13:00 GMT): OPEC AND OPEC+ TO PAUSE A PRODUCTION INCREASE DUE TO WORRIES OVER THE NEW COVID-19 STRAIN (OMICRON) AND RECENT DECISION BY THE US TO RELEASE OIL FROM THEIR STRATEGIC PETROLEUM RESERVES (SPR). OPEC+ delegates said the release of millions of barrels by the U.S. and other countries is unjustified under current market conditions and the group may have to reconsider plans to add more oil when they meet this week. To compensate for the new supply, Saudi Arabia and Russia are now considering a pause of the group's monthly collective increase, OPEC delegates said. For the record, they were supposed to increase production by 400,000 barrels per day in January 2022. Anyways, due to renewed COVID-19 worries and recent SPR release by the US and other countries, the markets now expect OPEC+ to tweak they recent plans and prevent an oil market oversupply.
- ANALYST OPINION: Goldman Sachs Group Inc. said the market’s deficit was larger than expected, and raised its year-end Brent forecast by $10 to $90 a barrel (Crude oil ~$87 a barrel). Goldman Sachs sees the recent fall as excessive. Citigroup Inc. said it remained “outright bullish” on crude oil as well as gas, according to a commodities outlook. Prices could rise to $90 a barrel. Bank of America says that Brent oil could jump to $120 a barrel by the end of June 2022 due to global energy crunch. Morgan Stanley said prices could jump to $95 a barrel in Q1 2022. UBS hiked its forecast from $80 to $90 a barrel. COMMENTS (RUSSIA): President Putin said that oil could hit the mark of $100. The Iraqi Oil Minister also said that oil could hit $100 in Q1 2022. Rosneft, Russia’s largest oil producer, said oil prices may rise to as high as $120 by the middle of next year as the ability of OPEC+ to meet demand is at risk from under-investments and sanctions.
- ONGOING: Energy Crisis in Europe as energy prices continued to rise and Gasoline and Oil prices continued to trade close to their 7-year highs. There are reports of an energy crisis in China, too, due to lack of coal and natural gas to produce electricity power. India is also expected to face electricity power outages as their coal inventories run low too: Europe is facing an extreme squeeze for energy supplies, with gas and power prices breaking records day after day. The continent is running out of time to refill storage facilities before the start of the winter as flows from top suppliers Russia and Norway remain limited.
- OIL PRICE RECENT ACTION: Crude oil has fallen from its seven year high of $85.38 to test its lowest rate since August 2021 ($64.41), marking a downward correction of around 25.0%.
Crude Oil, December 1, 2021
Current Price: 68.00
|
Crude Oil |
Weekly |
|
Trend direction |
|
|
77.50 |
|
|
75.00 |
|
|
73.00 |
|
|
63.00 |
|
|
61.70 |
|
|
60.00 |
Example of calculation base on weekly trend direction for 1.00 Lot*
|
Crude Oil |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
9,500.00 |
7,000.00 |
5,000.00 |
-5,000.00 |
-6,300.00 |
-8,000.00 |
|
Profit or loss in €** |
8,401.65 |
6,190.69 |
4,421.92 |
-4,421.92 |
-5,571.62 |
-7,075.08 |
|
Profit or loss in £** |
7,145.01 |
5,264.74 |
3,760.53 |
-3,760.53 |
-4,738.27 |
-6,016.85 |
|
Profit or loss in C$** |
12,124.28 |
8,933.68 |
6,381.20 |
-6,381.20 |
-8,040.31 |
-10,209.92 |
* 1.00 lot is equivalent of 1000 units
** Calculations for exchange rate used as of 08:50 (GMT) 01/12/2021
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