Oil held a remarkable turnaround yesterday, with both Brent (UKOil) and WTI (USOil) charting emphasised buying tails (black ellipses) on their respective H4 timeframe. This bullish price action came after the Saudi energy minister, in an interview with Bloomberg, said OPEC+ might consider production cuts. In addition, the minister said that the oil futures market has "disconnected" from the spot market.
In response, UKOil and USOil's stochastics are above 80 (blue arrows). If these positions hold, bullish momentum will be present, supporting energy prices.
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.