Oil Price Forecast

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. 


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