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WTI Crude - An End to the Price War?Market has high expectations for OPEC+++ The stand-out event today is undoubtedly the OPEC+++ meeting, where producers will attempt to find agreement on output that addresses the collapse in demand and crude prices. No one is winning in this environment but, as ever, each are losing to different degrees and have a different ideas on how it should be resolved. I don’t think a grand deal is as nailed on as markets would have us believe but, as ever, common sense should prevail. If a substantial deal is going to get over the line, the US must play a part in some form. It is currently hoping that a market-driven, forced production cut will be enough to convince other producers to cut but I’m not sure that will be enough. Other assurances will be necessary to get Russia on board, which is the biggest risk to a deal. That said, traders have heavily bought into this potential deal, following President Trump's tweet last week. The risk now is not just whether a deal is done but, if it is, will it be enough? I'm not sure a 10 million barrel cut will be enough to hold the gains and even 15 million may just about given the demand destruction we've seen. Should we see above 15 million barrels, it could give the oil price a big boost, with the break of $30 in WTI potentially being the catalyst for another big move higher. The next notable level above here is $35 and if producers want to see higher than this, the cut may have to be closer to 20 million and include the US in some form. Oil has jumped today on reports that Saudi Arabia and Russia have reached a deal on cuts of up to 20 million. The headline sounds good but the small print may not read quite as well. Should this be confirmed without any drawbacks in the fine print, I'd expect oil prices to rise more than they have. There's always the risk of "buy the rumour, sell the fact" strategies going into these things which is why the detail and believability is so important. From a technical standpoint, this looks like a market that's bottomed and just waiting to pounce above $30, but for that we need confirmation. A break above $30 says traders are satisfied with the cuts, at which point we may be able to look upwards for the first time in a while.
OANDA:WTICOUSD
by OANDA
Russia & Saudi deal on Monday = green light for marketsSCO is at a critical point right now. It seems that the large H&S has played out and quickly retreated after Trump tweeted about a potential deal between Saudi and Russia to cut oil production by 15 million barrels. No one knows exactly what the outcome of the OPEC talk occurring next Monday is going to be. If the plan falls through and political tensions escalate, then SCO will bounce hard. The demand for crude is very low and the supply keeps increasing! If the deal fails, and the important support level of $17.50 to $19.00 breaks, then expect major downside. It could go either direction Monday. Bitcoin and traditional markets are also at critical points based on technicals. My gut is telling me Russia might endure so US and Saudi experience more pain. Of course don't trade off my gut, I could be completely wrong! GLTA.
AMEX:SCOLong
by OptiPulse
3
Dxy Insane Opening. Last Stop around.....The Saudi price war was a flashpoint for today's action but it's really all about coronavirus. The news on the weekend worsened with too many cases and outbreaks to count. The conditions for a panic were evident the moment markets opened plunged heavily lower. Japanese market participants invest abroad massively but when uncertainty hits, they bring their money home. No one wants to be the last one to the exit and now the building is on fire and it's a stampede. Oil Price Declines Roil Global Markets, Virus Containment Efforts Escalate, Supply Crunch Ripples Past China, Treasury Yields Fall Further As Investors Expect More Rate Cuts and there are a lot of issue going around the world so basically 94.26 would be a potential area for dxy which is pivot weekly s3 or even the past lowest low around 93.87 (The last destination where price may head and halt if this pandemic eats global market for a certain while).
TVC:DXYShort
by jessi061
GLOBALISTS AT IT AGAIN, OIL PRIMED TO RUN (BCOUSD)Hello traders. This weekend, YEMENI REBELS have taken credit for a MAJOR DRONE STRIKE on Saudi Oil production, affecting their total output by HALF and therefore decreasing global supply by 2.5%. Shortly thereafter, American officials turned to IRAN to place blame. The American government has been pining for this conflict for a very long time. With any luck, whatever your political leaning might be, President Trump will see through this facade and keep the brave American military OUT of such a conflict. There is no excuse for the exchange of human life for profit!!!! All this to say, BAD FOR EARTH, GOOD FOR OIL SPECULATION. The technicals on Brent Crude, though somewhat 50/50 in my eyes, show CLEARLY that oil indeed has room to run here. This Black Swan event could be the perfect catalyst to cause a major spike in price. There isn't much more to say. I will be taking a market trade here with a relatively tight stop. This will be a low Risk high Reward trade. Good luck everyone. Most importantly, stay safe my friends.
OANDA:BCOUSDLong
by vox-populi
1
$TASI Don't Sleep on Saudi ArabiaOne market that has quietly, but powerfully, performed well for 2019 year-to-date has been Saudia Arabia's Tadawul All Shares Index , up 13.82% as of April 3rd 2018. On a macro level, the country has been buoyed by a resurgence in the price of oil , coupled with the "Risk On" feel supporting the markets since January 2019. More interestingly, on a domestic level, the country has been support by global index makers, such as MSCI , promoting Saudi Arabian shares for inclusion into global benchmark indices, such as the MSCI Emerging Markets Index. This has been a boon for Saudia Arabian stocks, as Saudi shares have received billions in fund flows from global investors, and great exposure to global investors as this asset class opens up further. Lastly, on a technical basis, the market technicals for Saudi shares are quite strong, with the price being supported by the 10-day EMA since December 2018. Furthermore, the Smart Money Index for the $TASI has risen steadily since January 2019, indicating strong flows into Saudia Arabian stocks. We believe that this trend will continue for 2019 and recommend investors to have exposure to have exposure to Saudia Arabia. For investors who are interested in profiting from this trend, the ETF $KSA provides a great opportunity for investors.
TADAWUL:TASILong
by EconomicsGlobal