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What is Brent oil?Brent oil is the benchmark by which the bulk of the 100 million barrels of crude oil traded each day is priced. Brent plays a unique role in the global oil industry as a benchmark crude oil on which most other types of crude are priced. If you want to invest in Brent oil, you can continue reading our article for answers to questions such as "What is Brent oil?", "How to buy Brent oil?", "What is the difference between Brent oil and WTI?", "Why does Brent oil prices rise?", "Why does Brent oil prices fall?", "Brent oil prices how to get oil? What is Brent oil? Brent oil is a blend of crude oil extracted from the North Sea in the early 1960s. It is considered a light, sweet type of crude oil. Crude oil is a natural resource that is extracted from the earth and refined into products such as gasoline, jet fuel, and other petroleum products. Brent oil accounts for more than half of the crude oil traded internationally. For this reason, it is an important criterion in the pricing of crude oil. Brent oil is also known as London Brent or Brent Blend. The other main crude oil benchmark used in world markets is West Texas Intermediate (WTI). What is the difference between Brent oil and WTI? Brent oil and WTI are the two major classifications of crude oil. Brent oil is extracted from the North Sea, while WTI is extracted from the USA, primarily Texas. Brent oil accounts for about two-thirds of global oil pricing. Oil produced in Europe, the Middle East and other parts of Africa is priced differently from Brent depending on its characteristics. Crude oil futures are traded on commodity exchanges: Brent oil is traded on the Intercontinental Exchange (ICE), while WTI is traded on the New York Mercantile Exchange (NYMEX). Why are Brent oil prices rising? Brent oil stocks are highly sensitive to changes in global supply and demand. Roughly speaking, if demand is high and supply decreases, the prices of brent oil will rise. Both demand increases and fears of supply disruptions put upward pressure on brent oil prices. Global oil demand, on the other hand, is increasing, outpacing increases in oil production and excess capacity. The biggest reason for this is the rapid growth of developing countries. These economies are increasingly industrialized and urbanized, leading to an increase in world oil demand. Why is Brent oil price falling? As with any commodity, stock or bond, brent oil prices fall when supply exceeds demand. OPEC is the main influencer of oil price fluctuations. OPEC is also a consortium of 13 countries, which, according to 2018 statistics, holds almost 80 percent of the world's oil reserves.
SKILLING:XBRUSD
by Forexcues
New Relative Lows in OilPersistent rececession fears have slammed oil. A momentous selloff has blasted through the $80's, digging deeply into the $70's, currently feeling out the high $77's at the time of this writing. We are getting support from just above $77.56, but are edging lower and things are looking very bearish. The Kovach OBV has pressed lower and is showing little signs of relief. If we are able to pivot, then $80 should be a ceiling, with $76.16 the next target to the downside.
NYMEX:CL1!Short
by quantguy
Gasoline almost back to pre-war levelsGasoline in the US has been trending lower and lower, now down 30% from its ATH. It hasn't filled the breakaway gap yet, but I think it will do so in the next few weeks, and that could be an excellent opportunity to go long in the short term. Oil has filled the gaps and chopped at support for a while but is looking weak. What is strange is how supply is limited, the spot market is strong... yet the paper market (futures, etc.) is invalid. Maybe the weakness is due to broadly slowing growth and economic activity, though I am not sure the REAL recession is here yet. The energy crisis isn't over, especially not in Europe... and this could get worse before they get better. Most issues remain the same, and there is very little progress. There are no new refineries; few nuclear plants are active again, Russia is still limiting gas flows to Europe, sanctions make oil flows harder, and OPEC+ cannot increase capacity fast. Our energy needs constantly grow, yet our production has plateaued. Very little can be done now to ease our problems, and our problems will become even worse if the SPR is drained and the US stops supplying the world with oil from its reserves. Most solutions require time, and politically many of these are not welcome by the green movement. Essentially, we have energy producers and green activists colluding to increase energy prices so that the first make more money and the second to make themselves feel good while simultaneously destroying people's lives and the environment. I believe crude oil could get down to 75$ and even 55$ in the short term but ultimately will go much higher once the Fed and other central banks are forced to cut rates and print money. It's all about managing your positions until we get to that point, as a big recession could cause oil and gas prices to tank. Oil and gasoline prices rose so fast that it is almost impossible for such a move not to cause a recession and consequently demand destruction. If we look at Gasoline prices in terms of other fiat currencies, we can see that they went 70% higher than their 2008 peak, which is a lot. I multiplied the RBOB with DXY to get a better picture of the actual cost of gas for everyone outside the US, as the US is less than 25% of the global economy. That means that for almost 90% of the population and 75% of the worldwide economy, gasoline costs 70% more than in 2008. This will have tremendous consequences, especially given the rate at which prices increase. In conclusion, although I don't think prices have bottomed, and we could see a sharp decline in the next few months, I believe gasoline and oil prices will go much higher, and dips are for buying.
NYMEX:RB1!
by BitcoinMacro
Crude oil analysis points to bullish turnaround Crude oil experienced a significant drop in price over the past two weeks. This week, however, it appears the energy commodity is bouncing back to the bullish side. The fall in the price of oil since May was triggered by the fear of a recession, in the US in particular, and numerous central banks’ moving against inflation with rate hikes, leading to slowing economic growth. This, however, has been mitigated by the fact that the global economy is now facing a lack of supply on the energy front. As global demand closes in on pre-pandemic levels there are indications of further support in demand for fuel. Supply concerns have cropped up as a result of Saudi Arabia and the UAE running at near oil production capacity and the political unrest occurring in both Ecuador and Libya. Given that these countries are some of the few that could fill the void left by the Russian sanctions, any hint of disruption may play a role in supporting or surging oil prices. On the other hand, US President Joe Biden last week called on Congress to suspend the Federal gasoline tax for 3 months. President Biden, in calling for gas tax holiday, further stated he wants merchants to pass on the entire reduction to consumers and the industry to refine more crude oil into gasoline to increase supply. On the technical side of Crude oil, after the conclusion of the OPEC meeting, we might see an increase in volatility in oil prices. On the daily chart, we can see a clear uptrend as the price bounces around its trend channel. Price made a rebound at around 104.0 on the lower trendline creating a bullish structure. As the price heads towards a minor resistance of 114.70, a break above this area could potentially send price towards 120.20 and possibly retest 124.9 before bouncing back around the upper channel for a possible price correction respecting the current trend indicator. One could also notice a bullish hidden divergence on the RSI as it creates a lower low while the candle stick chart creates a higher low on the daily time frame signaling for a potential turn to the upside. Any shift in fundamental factors, however, might negate this bullish indicator.
BLACKBULL:WTI
by BlackBull_Markets
Expected Key Points USOIL 17 May 2022USOIL 17 May 2022 The daily expected volatility is around 3.53% With an 77% accuracy based on the historical data, we can assume that the price of USOIL today is going to be between TOP 117.70 BOT 109.7 All of this taken into account with the opening price of today which was 114 From VOLUME POC point of view its above 114 which imply a bullish momentum at this very moment. From Fundamental/News point of view that can affect USOIL price: In 10h from now, FED Chair Poweel speaks
TVC:USOIL
by exlux
What will it take for OPEC+ to increase its oil output?The worsening oil supply shortage in the wake of the Russian invasion of Ukraine has sent pump prices to record highs in recent weeks, sparking fears of a catastrophic global oil crisis and soaring inflation. Despite these concerns, the Organization of Petroleum Exporting Countries (OPEC) and other non-OPEC oil-exporting nations, a global oil cartel known as OPEC+, are still holding back on boosting production, downplaying the impact of the conflict on global oil supply and demand and stressing that the current market volatility is triggered only by geopolitical developments. Why are oil prices high? Economic sanctions imposed against Russia have caused oil importers overseas to turn down Russian oil as "no one wants to be seen buying Russian products and funding a war against the Ukrainian people,” a New York Harbor trader was quoted by Reuters as saying earlier this month. Even when not many countries use Russian oil, pump prices have surged in recent weeks as the absence of millions of barrels of Russian oil from the global supply chain prompted importers of Russian crude like Europe to seek the commodity elsewhere such as from OPEC countries like Saudi Arabia. These leaves other traders scrambling to secure supply. How OPEC plays into the issue OPEC members — including Saudi Arabia, the United Arab Emirates and Venezuela — account for about 40% of the world’s crude oil production and 60% of petroleum traded globally, according to the US Energy Information Administration. In 2020, as demand for oil plummeted when most countries were under lockdown, OPEC+ agreed to a deal with former US President Donald Trump to slash nearly 10 million barrels of oil per day, or close to 10% of the global oil output. The world’s top exporters eventually started beefing up production by 400,000 barrels a day since August 2021 as economies reopened. Most recently, with the Russia-Ukraine war threatening a global oil supply crunch, the focus has again turned to OPEC+ to ramp up output. However, the group in its recent meeting on March 2 — about a week since Russia started invading Ukraine — reaffirmed its commitment to only increase its crude oil output by 400,000 bpd. “It was noted that current oil market fundamentals and the consensus on its outlook pointed to a well-balanced market, and that current volatility is not caused by changes in market fundamentals but by current geopolitical developments,” OPEC+ said in a statement. UAE pushes for increased output Yousuf Al Otaiba, the UAE's ambassador to Washington, last week said the country “favor production increases and will be encouraging OPEC to consider higher production levels.” The statement caused oil prices to fall at most in two years on Thursday, with Brent crude futures falling 13.2% at $111.14 a barrel, the biggest one-day drop since April 21, 2020. Prices have continued to fall on Monday, with Brent prices falling to $107.59 a barrel for May contracts and WTI crude slipping to $103.42 for April contracts. Oil prices have also retreated on expectations that some producers may accelerate production. Will OPEC+ boost output? In late January, prior to the Ukraine conflict, the EIA had predicted a nearly 2.7 million bpd increase in OPEC’s oil output this year, the largest year-over-year jump in production since 2004. Energy research firm Rystad Energy most recently estimated that Saudi Arabia, the UAE, Iraq and Kuwait can bring about 4 million bpd of spare capacity into the market within three to six months, potentially easing the crisis. However, that amount still falls short of Russia’s 7 million bpd in oil exports, according to Reuters. In an interview with Bloomberg News last week, OPEC’s outgoing general secretary Mohammad Barkindo said there is "no physical shortage of oil” amid the Ukraine crisis, adding that the physical market supplies are guaranteed. Barkindo’s statement underscores the OPEC+’s likelihood of only beefing up production once signs of a supply crunch become more imminent. One factor that could prompt the cartel to yield to calls to accelerate output is the potential for a demand destruction. Oil demand may soon peak and decline when retail fuel prices become relatively expensive and as the prices of other consumer goods skyrocket. The transition to renewable energy sources and the shift to new-energy vehicles may also cause oil demand to weaken, especially as Western countries and other economic giants like China accelerate their climate action targets. The potential end to the Russia-Ukraine dispute could likewise stabilize oil prices and encourage OPEC+ to boost output as global supply chains and activities resume, although the likelihood of this happening in the near term is relatively slim as Western countries have refused to directly intervene over fears of wide-ranging “consequences” from Vladimir Putin.
BLACKBULL:WTI
by BlackBull_Markets
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