Oil prices charting platform to potentially take them higher
FXCM's WTI and Brent CFDs, USOil (left) and UKOil (right), have both charted a higher trough (HT) followed by a higher peak (HP) and are trending up. Moreover, they are setting up to chart the next higher trough (HT?) in their respective uptrends. To do this, they need to close above the aqua horizontal lines for the week. If their prices act this way, it sets up the platform for UKOil and USOil to potentially chart the next higher peak in their trends.
China's cut in its required quarantine period for international travellers to a week and supply disruptions in Libya have supported oil prices. OPEC is meeting today, with OPEC+ set to meet tomorrow. The cartel will likely ratify the increase of 648K barrels per day. However, it is questionable whether this is achievable, given the already restrictive capacity conditions. Moreover, supply is already under pressure given the EU's ban on Russian seaborne imports.
Russell Shor
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.
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