Sustainable growth in US shale oil production is likely to offset global production problems over the next few months. The moods of the oil market are heavily influenced by the growing demand and supply gap for oil. On the one hand we have an escalating trade war and currency crisis in Turkey that make large companies consuming oil to reduce stocks in order to protect themselves from possible losses and on the other, appreciating US dollar, which further drives the price down (albeit purely correlative).
Despite the above-mentioned factors, commodity analysts point out that the booming shale deposits in the United States is the main factor leading to record yields and US oil reserves.
On Tuesday, the US Petroleum Institute (API) reported that US oil stocks increased by almost 4m. barrels, and a little earlier today it became clear that the figure is well above this: + 6.805mil. barrels.
Together with the weakening economic environment, the price of oil collapsed and came out of the main upward trend.
Technically, the price is on a support that will most likely keep the price, but in the short run. If shale crops continue to rise and the economic environment stays at the current level, the area around $ 62 per barrel remains the most likely scenario. Both the long and short positions of the current levels are too risky.
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.