Crude Oil Remain in An Uptrend, But the Pace Has Slowed

US Crude Oil has made quite a comeback since it it dived to $-37 last year in March, following the outbreak of the coronavirus. The global economy dived into a recession last year, while going through another weak phase in winter this year, but crude Oil has been marching higher.

The weakness in the USD has played a role in this increase, but also OPEC+ to cut Oil production and the excessive amount of cash that governments and central banks have injected in the economy, keeping the sentiment positive for Oil. We saw a pullback in March, but the uptrend resumed again and crude Oil keeps making new highs.

The pace of the uptrend has slowed, but buyers remain in charge nonetheless. Today we saw a $1.50 pullback, but the price action tells us that the retreat might have ended and the comments from IEA are bullish for Oil.

US Oil Live Chart

WTI

IEA Comments on Oil and New Fossil Fuel

“The International Energy Agency, which was founded by rich industrial nations after oil shocks in the 1970s to promote secure and affordable energy supplies, says the world needs to stop drilling for oil and gas right now to prevent a climate catastrophe.

In order to reach net zero carbon emissions by 2050, the influential group said in a report Tuesday that investment in new fossil fuel supply projects must stop immediately, and no new coal-fired plants should be approved.”

This means less supply in the coming years or even months, which is bullish. So, the retrace down seems to be over for crude Oil now on the H1 chart, while on the daily chart US WTI crude seems to be supported by moving averages. So, this might be a good chance to go long on Oil.

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 See More
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
0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

HFM

Doo Prime

XM

Best Forex Brokers