Is Oil Getting Too Expensive Again?

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. 

 

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