Commodities

Is Oil Getting Too Expensive Again?

Is Oil Getting Too Expensive Again?

At the pumps, drivers are paying around GBP 1.25 a litre at a known supermarket.

We can see the high of oil back in 2018, then the drop, the support just fell away and the oil price fell heavily before finding the vital support at just above the 4000.0 level.

Recently President Trump had tweeted against OPEC‘s “artificially high prices” perhaps also thinking Is Oil Getting Too Expensive Again? and this has had a recent impact on oil prices.

The recent rally since the low 4 months ago isn’t really a surprise, we know being a commodity oil does often perform in line with the economy.

We also see a positive correlation between stocks and crude oil.

Though oil refiners in the US have processed in the region of 16.32 million barrels per day lower than the 16.55 million at the same time in 2018.

The cut in production is more than likely to have an impact on price following Supply and Demand theory.

Being in a well timed position to take advantage of the oil price, we decided to enter in to a Buy trade, we hope to stay in this position for the long term expecting price to rise further.

We’ll analyse as we go, with a keen eye on President Trump’s tweets.

Is Oil Getting Too Expensive Again?

(Our trading and image was done using an account with UK based broker IG)

*Please Note, Forex and other forms of trading carry a high level of risk to your capital as you could lose all of your investment. These products may not be suitable for every investor, therefore ensure you understand the risks and seek independent advice. Invest only what you can afford to lose. We are NOT financial advisers and we do NOT offer financial advice. 

 

Oil Price Forecast




Oil Price Forecast.

We decided to take on the trade, believing the oil forecast could enter another Bullish position, due in part to oil prices having lately been buoyed by the supply cuts from Opec.

With the Bears taking full control in recent times, the oil price dropped rather sharp.

Saudi Arabia, a massive oil producer is set to restore the balance in the oil market and make cuts to it’s oil production, it’s forecast to cut to 10.1 million barrels in February from 10.5 million.

This cut has potentially had a positive effect on oil supply and demand, and allowed the Bulls to enter back in to the market and take the oil price back on a potential rally.

The major oil companies like BP and Royal Dutch Shell have been boosted by an increase in the oil price.

Closer to home in the UK, car production fell in December from the November amount of 129,030 units, this could be more to do with other economic factors coming in to play, however if the is sign of more macroeconomic data regarding car production world wide, this could have a major impact on oil.

We’ll be watching carefully.

oil price forecast

(Our trading and image was done using an account with UK based broker IG)

*Please Note, Forex and other forms of trading carry a high level of risk to your capital as you could lose all of your investment. These products may not be suitable for every investor, therefore ensure you understand the risks and seek independent advice. Invest only what you can afford to lose. We are NOT financial advisers and we do NOT offer financial advice. 




Still Holding for the Sale of Gold




Still holding for the sale of gold.

With the stronger US Dollar and rising US Treasury yields these both put pressure on gold prices, we still believe Gold could still be heading down for the price to touch the 1150 mark.

1150 still looks to be a strong area of Buyers to get in on the sale of gold and buy cheap and take price back up.

Even with a sale of gold, the commodity is still an investment, seen as a safe asset.

For the time being, price has been stuck at around the 1200 price area, and could still contain sellers waiting to drive price further down.

While we wait and keep hold of this trade, we’ll keep an eye on US Dollar and economic data as these could have a major influence on gold price.

sale of gold

(Our trading and image was done using an account with UK based broker IG)

*Please Note, Forex and other forms of trading carry a high level of risk to your capital as you could lose all of your investment. These products may not be suitable for every investor, therefore ensure you understand the risks and seek independent advice. Invest only what you can afford to lose. We are NOT financial advisers and we do NOT offer financial advice. 

No Gold Rush at the Moment




No Gold Rush at the moment it would seem.

Gold could still rebound, though in the past few weeks we’ve seen the selling of the gold metal becoming hectic as if it was in an alternative gold rush to sell.

We believe a bounce had been coming hence why we entered the trade, however it could be the bounce is short lived and a continuation of the downtrend.

We entered for a Buy trade to get on the “Gold Rush”, but we don’t feel it will last long due to the position of sellers still, at around the 1200.00 area, price looks like it had a moment of strength to take it back up to that level and the sellers will enter again for another sell off and take price down further to an area we believe to be containing buyers around the 1150.00 area.

We’ll be taking a close watch of current economic events such as the US-China trade talks, as this too will be sure to have an impact on Gold.

Gold Rush

(Our trading and image was done using an account with UK based broker IG)

*Please Note, Forex and other forms of trading carry a high level of risk to your capital as you could lose all of your investment. These products may not be suitable for every investor, therefore ensure you understand the risks and seek independent advice. Invest only what you can afford to lose. We are NOT financial advisers and we do NOT offer financial advice. 




Shorting Silver before a Breakout




Shorting Silver before a breakout, with silver looking to have been trading with in a narrow range for a good couple of years as shown by the bottom Tradingview weekly chart.

Within the narrow range we took our opportunity to take a quick short trade on silver, price had reach the resistance level, so after hitting this level it was struggling to breakout still, after placing our trade, price then took a sudden drop similar to the previous drops as shown on the daily chart below.

We know that price will have to breakout soon, and our conclusion is it’ll head for an upward trend, when, this we are unable to speculate at this time, the is a build up of orders appearing below and around the 1650.0 area, whether these buyers have the strength to help price breakout of the current range soon and even take price slightly highers is again hard to speculate but could be possible.

We as always had been thankful for our analysis help us to a profit of £60.10 for the fund, we could be keeping a close watch on silver for more opportunities, perhaps not to short and more or a buyer potential.

Shorting silver

 

Silver on the Tradingview Weekly Chart.

shorting silver

(Our trading and image was done using an account with UK based broker IG)

*Please Note, Forex and other forms of trading carry a high level of risk to your capital as you could lose all of your investment. These products may not be suitable for every investor, therefore ensure you understand the risks and seek independent advice. Invest only what you can afford to lose. We are NOT financial advisers and we do NOT offer financial advice. 




Quick Decision on Oil





Oil had been in a uptrend for a short period of time, we made a quick decision on crude oil.

We decided on a quick sell trade, as we believe price had been touching resistance level.

However with news that OPEC to be cutting crude output by as much as 1.8 million barrels per day.

Despite the recent cuts, analysts say supply is still going to be meeting demand, we could soon see another rise in price.

Oil Trade

(Our trading and image was done using an account with UK based broker IG)

If you want to learn how to make money online, then click here to learn about one of our Traders

*Please Note, Forex and other forms of trading carry a high level of risk to your capital as you could lose all of your investment. These products may not be suitable for every investor, therefore ensure you understand the risks and seek independent advice. Invest only what you can afford to lose. We are NOT financial advisers and we do NOT offer financial advice. 




US Crude Oil Markets Long off Support





Oil markets have risen sharply in recent weeks in the anticipation, the current US and China trade dispute will be resolved without too much damage to the global economy as a whole.

We’ve seen some large movements within a support and resistances level, price was having trouble trying to take momentum to break through resistance, it needed one last push at the support line to find more buyers coming into the market, final broke resistance and found a new support level, we decided to go in for a quick trade once this new support level had been found and tested.

Crude Oil managed an increase to 68.66 from previous trading session.

Oil Markets

(Our trading and image was done using an account with UK based broker IG)

If you want to learn how to make money online, then click here to learn about one of our Traders

*Please Note, Forex and other forms of trading carry a high level of risk to your capital as you could lose all of your investment. These products may not be suitable for every investor, therefore ensure you understand the risks and seek independent advice. Invest only what you can afford to lose. We are NOT financial advisers and we do NOT offer financial advice. 




 

Gold Short Trade for New Year Profit

With stock markets around the world on a somewhat new year surge, from a correlation point of view we thought we’d short Gold, added to this the recent weakness in the US Dollar supported a growth in the price of gold, however a new year strengthening of the dollar after a discussion of tax cuts and further interest rate hikes meant the surge in gold prices was a temporary phase.

The markets will also be waiting for Friday’s Non- Farm Payroll results which could go either way for the Dollar and could prove turbulent for gold

We went with a quick trade for a healthy £317.00 profit, a good result as we wanted to be in and out before further change in the market news.

Gold

(Our trading and image was done using an account with UK based broker IG)

If you want to learn how to make money online, then click here to learn about one of our Traders

*Please Note, Forex and other forms of trading carry a high level of risk to your capital as you could lose all of your investment. These products may not be suitable for every investor, therefore ensure you understand the risks and seek independent advice. Invest only what you can afford to lose. We are NOT financial advisers and we do NOT offer financial advice. 

 




API Report Sends Crude Oil South

The American Petroleum Institute (API) report yesterday confirmed a build of 6.513 million barrels of US Crude Oil. This was against many analysts expectations of a draw-down of 1.4 million barrels , for the week ending November 10. A poll conducted found that 3 analysts expected a rise in inventories, and 8 had expected them to fall. The estimates for the forecasts were far and wide ranging from a draw of over 3 million barrels to a build of over 2 million barrels.

Both WTI and Brent benchmarks were down on Tuesday before the release of the API figures, by almost $2 per barrel under last weeks figures. This was because of the bearish news which was released from the IEA (International Energy Agency), which showed that the oil market isn’t in good health. The IEA has revised its forecast for oil demand in 2017 by 50,000 bpd and in 2018 by 190,000 bpd.

All in all, Crude oil inventories have shed a total of over 30 million barrels since the start of 2017, according to current API data.

WTI was trading at $55.31, which was down 2.56% on the day at 21:27pm GMT. This is almost $2 per barrel under last week’s levels! Whilst Brent was trading down by 2.26% on the day at %61.73.

The U.S. EIA (Energy Information Administration) report on oil inventories is due to be released on Wednesday at 3:30pm GMT.

For more information on Crude Oil, see one of our Traders recent posts.

API report sends crude oil lower

(Our trading and image was done using an account with UK based broker IG)

If you want to learn how to make money online, then click here to learn about one of our Traders

*Please Note, Forex and other forms of trading carry a high level of risk to your capital as you could lose all of your investment. These products may not be suitable for every investor, therefore ensure you understand the risks and seek independent advice. Invest only what you can afford to lose. We are NOT financial advisers and we do NOT offer financial advice. 




Crude Oil Short (WTI) – 7th Nov – £24.80

Crude Oil Short: Towards the evening on Friday 3rd November saw the Baker Hughes rig count change by -1% with the current rig count standing at 898, which sent oil prices higher making new highs over $57 a barrel. With less rigs pumping oil, basic supply & demand states that the less of something there is, the more it’s worth. Less rigs pumping oil out the ground meant that the value of Crude Oil appreciated.

With prices now at all time highs of 2017, there are a few chances for traders to ride on the back of some profit taking, which is exactly what I did.

Crude Oil Short

(Our trading and image was done using an account with UK based broker IG)

If you want to learn how to make money online, then click here to learn about one of our Traders

*Please Note, Forex and other forms of trading carry a high level of risk to your capital as you could lose all of your investment. These products may not be suitable for every investor, therefore ensure you understand the risks and seek independent advice. Invest only what you can afford to lose. We are NOT financial advisers and we do NOT offer financial advice. 




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