Oil Remains Bullish This Week, as OPEC Awaits Russia’s Decision - Forex News by FX Leaders
The pullback lower is over now for WTI crude

Oil Remains Bullish This Week, as OPEC Awaits Russia’s Decision

Posted Thursday, February 13, 2020 by
Skerdian Meta • 1 min read

Crude Oil was pretty bullish in December, after OPEC+ decided to sut production again, by an additional 50k barrels. The climb continued in the first week of this month, after tensions increased in the Middle East, increasing fears that Oil production and supply would be disrupted.

But, coronavirus hit the markets by the middle of January and the risk sentiment has deteriorated. Risk assets such as Crude Oil have been bearish since then, with US WTI crude losing more than $16. But, last week the sentiment improved a bit, especially after OPEC’s comments that they might cut production again, this time by a massive 600k barrels/day.

That would drive the supply down considerably, so Oil traders have stopped selling for now. In fact, Crude Oil has turned bullish this week, breaking above all moving averages on the H1 chart. Earlier today, we saw a retrace lower, but the price bounced off the 50 SMA (yellow).

So, Crude Oil remains bullish and Russia said this morning that they have not made a decision on additional OPEC+ output cuts yet. If they refuse, then it’s likely that Crude Oil will resume the larger bearish trend. If they do, then I expect WTI Oil to reach $55 without much resistance on the way.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of