Don’t waste your time – keep track of how NFP affects the US dollar!

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Join the Facebook community of FBS!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Email tooltip

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

FBS Mobile Personal Area

FREE

View
Oil: no easy way back

Oil: no easy way back

Information is not investment advice

What are the forecasts for the oil market? Is there any hope of a recovery?

What happened?

The International Energy Agency decreased its forecasts for the oil market on Thursday. Indeed, the coronavirus ruined the oil demand. Therefore, the Agency can’t give any optimistic guidelines. You might think that international borders have opened, and all the people, that waited for so long, broke out travelling. However, according to official data, there is still a low demand for jet fuel. Many countries have recently recorded fresh virus outbreaks, especially Europe and Latin America, where the coronavirus is spreading at a quite high speed. 

Things are not so terrible as it may seem, OPEC+ members made all efforts to contain the prices at the current levels for almost two months. They have made enormous cuts of oil production, which pushed oil prices a little bit higher. Nevertheless, the prices are still well below pre-crisis levels, and they are unlikely to fully rebound soon.

Moreover, Libya’s port blockade will keep the North African’s crude oil out of the world market. Libya's oil export terminals are occupied. Therefore, it should help with the world’s supply glut. According to Bloomberg, Libya’s oil production dropped by 40% since July. It’s anticipated to be 1.2 million barrels in August. On the one hand, this blockade has made the devastating damage on the whole Libyan economy. On the other hand, it may decrease the world’s oversupply and push oil prices higher.

Technical tips

The Brent oil is slowly moving upward. There is the strong resistance at 200-day moving average at $46.50. It’s more likely the price will bounce off this resistance. However, if it manages to break it out, it will open doors to the key psychological mark at $50.00 at the 61.8% Fibonacci level. Sooner or later it should reach this level. Support levels are $43.50 and $42.00.

Important! To trade Brent oil with FBS you need to choose BRN-20V.

Brent_OilDaily.png

LOG IN

Similar

Popular

Choose your payment system

Learn more

Callback

Please fill in the form below so we can contact you

Select the best time for us to call you. We give calls from Monday to Friday in suggested intervals. In case we couldn't get through, we will try again at the same time the next day. For getting real-time assistance, use FBS chat.

We provide only English-speaking callbacks. If you prefer any other languages, contact the support team.

We will call you at the time interval that you chose

Change number

Your request is accepted.

We will call you at the time interval that you chose

Next callback request for this phone number will be available in 00:30:00

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later