2021-02-03 • Updated
As you can see, two days separate these headlines; and yet, they stand in direct contradiction. What’s on the table in the US oil sector and how may it affect the oil price?
One of the signature characteristics of the Biden presidency plan is environmental care. The US President said he wanted to make the US carbon-free by 2050. To achieve that, he’d need to transition the US economy from fossil fuels to other energy resources. That would require the US re-joining the Paris accord in the first place (to be re-affirmed on April 22 during the Earth Day meetings). Here are some of the central implications discussed in the media now.
As far as the oil market is concerned, the smaller the input of the US oil industry to the global market, the higher the price of oil will theoretically be. In this sense, OPEC may be very much interested in Joe Biden’s green economy efforts as it may not only give room to the cartel’s expansion but may push the oil price, too. However, in the long-run, this process will not go without much fluctuation on the way because if Joe Biden makes the American industry carbon-free. It will eventually need less oil than before. Hence, the global oil demand is expected to suffer from this side. Nevertheless, through 2021, the channel between $55 and $65 appears to be the mainland for the WTI oil price performance. $75 may also be approached by the price in case the uptrend of 2017-2018 repeats itself in the coming 12 months.
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Crude oil futures surged on Monday due to disruptions in Russian refining capacity caused by Ukrainian drone strikes and Moscow's decision to cut output to comply with OPEC+ targets. The West Texas Intermediate (WTI) contract for May settled at $81.95 a barrel, up $1.32, while the Brent contract for May settled at $86.57 a barrel, also up $1.32. Russia instructed...
Bearish scenario: Sales below 80.00 with TP1: 79.60... Anticipated bullish scenario: Intraday purchases above 80.70 with TP: 81.50...
Brent oil is currently on a bullish trend, facing resistance near $84 and supported by the 200-day EMA. Breaking above this level could lead to a climb towards $90. Short-term support is observed around $80, backed by the 50-day EMA. As summer approaches and travel increases, crude oil tends to benefit from seasonal patterns. Despite temporary setbacks, buying...
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
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