Russia announced it is cutting its oil production by 500,00 bpd in March. This is in response to the West imposing price caps on Russian oil and related products.
Both UKOil and USOil continue to trade in their neutral channels between their blue bands. However, both are trading higher on the news out of Moscow. Their momentum-based stochastic is heading up.
A movement by the indicators to the 80+ levels (blue arrow), and if they can hold there, will see the underlying momentum push the oil instruments into their bullish channels between the upper blue and red bands.
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.