CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% 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.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Crude OIL

Market Opportunities - 20/09/2022

20 September, 2022

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:

  • EVENT: OPEC+ MEETING (October 5, Wednesday): IN SEPTEMBER, OPEC+ DECIDED TO CUT OIL PRODUCTION BY 100,000 BARRELS A DAY FROM OCTOBER. In addition, the OPEC+ statement said that they are facing limited capacity, which is confirmation that further supply increases are very unlikely. Moreover, more production cuts could be expected in the coming period. JPMorgan says 1 million barrels a day of cut could be necessary for OPEC+ to balance the markets

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 could result in budget deficits unless government policies change.

  • G-7 GROUP AGREED TO IMPOSE PRICE CAP ON RUSSIAN OIL (TO START IN EARLY DECEMBER): The G7 (Group of Seven) consists of the UK, US, Canada, France, Germany, Italy and Japan. The introduction of a price cap on Russian oil means countries that sign up to the policy will only be permitted to purchase Russian oil and petroleum products transported via sea that are sold at or below the price cap.
  • EU AGREED AND APPROVED TO BAN 90% OF RUSSIAN OIL TO THE EU (TO START IN EARLY DECEMBER). European Union leaders agreed 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.
  • US STRATEGIC PETROLEUM RESERVE (SPR) OIL RELEASES TO END IN NOVEMBER, but amount of SPR releases remains unchanged. The decision coincides with November 8 Midterm elections in the USA. With that, the US will stop supplying the oil markets with extra 1 million barrels a day.
  • OIL PRICES MAY BE EXPECTED TO MOVE TOWARDS AND 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 $98. UBS forecasts $110 a barrel by the end of 2022. JPMorgan expects a price of $150 a barrel.

Crude Oil, September 20, 2022
Current Price:85.00

Crude Oil

Weekly

Trend direction

UP

Resistance 3

105.00

Resistance 2

100.00

Resistance 1

92.00

Support 1

79.00

Support 2

78.00

Support 3

77.00

Example of calculation base on weekly trend direction for 1.00 Lot1

Crude Oil

Pivot Points

Resistance 3

Resistance 2

Resistance 1

Support 1

Support 2

Support 3

Profit or loss in $

20,000

15,000

7,000

-6,000

-7,000

-8,000

Profit or loss in €2

20,000

15,000

7,000

-6,000

-7,000

-8,000

Profit or loss in £2

17,476

13,107

6,117

-5,243

-6,117

-6,990

Profit or loss in C$2

26,550

19,913

9,293

-7,965

-9,293

-10,620

1. 1.00 lot is equivalent of 1000 units

2. Calculations for exchange rate used as of 9:00 (GMT+1) 20/09/2022

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 detail
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