Crude Oil weekly uptrend opportunity based On 1.00 Lot Calculation:
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EVENT: THE EUROPEAN UNION PLAN A PRICE CAP ON RUSSIAN NATURAL GAS (LIKE G-7 ON OIL). President Putin said: "We will not supply gas, oil, coal, heating oil - we will not supply anything”. Russian President Vladimir Putin threatened to stop all energy shipments to Europe. EU PLAN: The EU however plans to press ahead with a price cap on Russian gas. EU MEETING: EU energy ministers are due to hold an emergency meeting on Friday (September 9).
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OPEC+ DECIDED TO CUT OIL PRODUCTION BY 100,000 BARRELS A DAY FROM OCTOBER. OPEC and non-OPEC partners, an influential energy alliance known as OPEC+, decided to cut production targets by about 100,000 barrels per day from October. OPEC+ said in a statement that Monday’s decision to revert back to August levels of production was because the upward adjustment was “intended only for the month of September.” In addition, the OPEC+ statement said that they are facing limited capacity, which is confirmation that further supply increases are very unlikely. The next OPEC+ meeting is scheduled for Oct. 5.
SAUDI ARABIA, de facto OPEC LEADER, MAINTAINS A FISCAL BREAKEVEN OIL PRICE OF AROUND $80 A BARREL. DEFINITION: An oil-exporting country’s “fiscal breakeven” oil price is the minimum price per barrel that the country needs in order to meet its expected spending needs while balancing its budget. Oil prices below this level should result in budget deficits unless government policies change. -
NEWS: EU AGREED TO BAN 90% OF RUSSIAN OIL TO THE EU. European Union leaders agreed in principle on to cut 90% of oil imports from Russia by the end of this year. The embargo would encompass 90% of all imports from Russia once Poland and Germany, which are also connected to the pipeline, stop buying it by the end of the year. Two thirds of the Russian oil imported by the EU comes via tanker and one third by the Druzhba pipeline. The embargo on seaborne oil imports would therefore apply to 2/3 of all oil imported from Russia.
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OIL PRICES MAY BE EXPECTED TO MOVE ABOVE THE $100 MARK: Goldman Sachs predicts oil at $130 by the end of the year and 2 million barrels a day of DEFICIT, and $125 in 2023. Morgan Stanley Price Target stands at $110. UBS forecasts $125 a barrel by the end of 2022. JPMorgan also laid two scenarios that could see oil at $380 or $190. First scenario, if Russia cuts their oil output by 5 million barrels, the oil prices could jump to $380. Second scenario, if Russia cuts their oil output by 3 million barrels, the oil prices could jump to $190.
Crude Oil, September 8, 2022
Current Price: 82.00
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Crude Oil |
Weekly |
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Trend direction |
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|
100.00 |
|
|
94.00 |
|
|
87.50 |
|
|
77.00 |
|
|
76.00 |
|
|
75.00 |
Example of calculation base on weekly trend direction for 1.00 Lot1
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Crude Oil |
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Pivot Points |
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Profit or loss in $ |
18,000 |
12,000 |
5,500 |
-5,000 |
-6,000 |
-7,000 |
|
Profit or loss in €2 |
18,040 |
12,026 |
5,512 |
-5,011 |
-6,013 |
-7,015 |
|
Profit or loss in £2 |
15,678 |
10,452 |
4,790 |
-4,355 |
-5,226 |
-6,097 |
|
Profit or loss in C$2 |
23,637 |
15,758 |
7,222 |
-6,566 |
-7,879 |
-9,192 |
1. 1.00 lot is equivalent of 1000 units
2. Calculations for exchange rate used as of 09:00 (GMT+1) 08/09/2022
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.
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You may wish to consider closing your position in profit, even if it is lower than suggested one
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Trailing stop technique can protect the profit – Ask your Senior Account Manager for more detail