Crude Oil weekly uptrend opportunity based On 1.00 Lot Calculation:
- EVENT: OPEC+ MEETING (THURSDAY, NOVEMBER 4 at 14:00 GMT): Saudi Arabia, on the other hand, said that OPEC+ should take a cautious approach when it comes to raising production, meaning that they will not rush to abruptly increase oil production due to higher oil prices. Russia expects OPEC+ to also move forward according to previous plan and increase production only by 400K barrels per day, despite US calls on OPEC+ to increase production at more aggressive pace. The outcome could be positive for oil (oil derivatives) prices as supply will remain limited amid rising demand into the year end.
- 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. The current crisis could add 500K to 650K barrels per day of demand as industries switch from natural gas to oil (and oil product) use.
- US OIL INVENTORIES: Cushing oil inventory (delivery point for US crude futures) fell below 30 million barrels (the lowest since 2018).
- 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 ~$87-88 a barrel). 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. Morgan Stanley said prices could jump to $95 a barrel in Q1 2022. UBS hiked its forecast from $80 to $90 a barrel. Meanwhile, Russia’s President Vladimir Putin said that oil could hit the mark of $100. The Iraqi Oil Minister also said that oil could hit $100 in 1H 2022.
Crude Oil, November 4, 2021
Current Price: 80.95
|
Crude Oil |
Weekly |
|
Trend direction |
|
|
88.00 |
|
|
86.90 |
|
|
84.00 |
|
|
78.00 |
|
|
76.80 |
|
|
75.00 |
Example of calculation base on weekly trend direction for 1.00 Lot*
|
Crude Oil |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
7,050.00 |
5,950.00 |
3,050.00 |
-2,950.00 |
-4,150.00 |
-5,950.00 |
|
Profit or loss in €** |
6,104.16 |
5,151.74 |
2,640.81 |
-2,554.22 |
-3,593.23 |
-5,151.74 |
|
Profit or loss in £** |
5,168.17 |
4,361.79 |
2,235.87 |
-2,162.57 |
-3,042.25 |
-4,361.79 |
|
Profit or loss in C$** |
8,742.71 |
7,378.60 |
3,782.31 |
-3,658.30 |
-5,146.42 |
-7,378.60 |
* 1.00 lot is equivalent of 1000 units
** Calculations for exchange rate used as of 09:00 (GMT) 04/11/2021
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