Crude Oil weekly uptrend opportunity based On 1.00 Lot Calculation:
- EVENT: OPEC+ MEETING, September 5 2022. OPEC+ continued to under deliver on oil production increases as many OPEC+ oil producers face limited production capacity. Many OPEC and OPEC+ producers are lacking the capacity to raise output because of insufficient oilfield investment and Western sanctions against Iran, Venezuela and Russia.
- EVENT: OPEC+ Joint Technical Committee (JTC) meeting (August 31) - expects a 2023 oil market deficit of 300,000 barrels per day (bpd) under its base case. It also forecast a widening of the deficit to 1.8 million bpd in the fourth quarter of 2023, the document showed. The JTC assessment took into consideration lower production by its members for the rest of 2022 and for 2023.
- EVENT: IRAN NUCLEAR DEAL UNCERTAINTIES CONTINUE. Iran and the US are still studying the latest draft deal prepared by the EU and soon final conclusions and answers will be provided. According to some reports Iran still wants guarantees that the US will not pull out of the new deal and asks to be removed from the list of countries that support terrorism. According to some analysts, the US might find it hard to meet those demands of Iran’s, which could lead to a collapse of the latest efforts to get a deal. Goldman Sachs said that they do not expect a deal to clinch in the near term.
- NEWS: OPEC+ STANDS READY TO CUT OIL PRODUCTION OUTPUT (AUGUST 22, 2022). According to a Reuters report, OPEC+ is standing ready to cut their oil output to correct an oil price decline within futures markets. The Saudi energy minister highlighted that oil price declines were based on “unsubstantiated claims of demand destruction” and that futures markets “were ignoring extremely tight physical crude oil supply”.
- NEWS: EU AGREED TO BAN 90% OF RUSSIAN OIL TO THE EU. European Union leaders agreed in principle 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.
- OIL PRICES MAY BE EXPECTED TO MOVE ABOVE THE $100 MARK: Goldman Sachs predicts oil at $110 a barrel in Q3 with expectations for a 2 million barrel per day of deficit. Furthermore, they see oil prices at $130 a barrel by the end of the year. Morgan Stanley kept its Price Target to $110 for Q3. Barclays sees oil prices at $103 a barrel, while UBS sees it at $122 abd Citigroup at $120.
CRUDE OIL, September 1, 2022
Current Price: 88.00
|
Crude oil |
Weekly |
|
Trend direction |
|
|
100.00 |
|
|
98.00 |
|
|
96.00 |
|
|
81.00 |
|
|
79.50 |
|
|
78.50 |
Example of calculation based on weekly trend direction for 1 Lot1
|
Pivot Points |
||||||
|
Profit or loss in $ |
12,000.00 |
10,000.00 |
8,000.00 |
-7,000.00 |
-8,500.00 |
-9,500.00 |
|
Profit or loss in €² |
11,957.79 |
9,964.82 |
7,971.86 |
-6,975.38 |
-8,470.10 |
-9,466.58 |
|
Profit or loss in £² |
10,345.76 |
8,621.47 |
6,897.18 |
-6,035.03 |
-7,328.25 |
-8,190.40 |
|
Profit or loss in C$² |
15,815.52 |
13,179.60 |
10,543.68 |
-9,225.72 |
-11,202.66 |
-12,520.62 |
1. 1 lot is equivalent of 1,000 units
2. Calculations for exchange rate used as of 10:15 (GMT+1) 01/9/2022
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 details