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

Data Collection Notice

We maintain a record of your data to run this website. By clicking the button, you agree to our Privacy Policy.

facebook logo with graphic

Join Us on Facebook

Stay on top of company updates, trading news, and so much more!

Thanks, I already follow your page!
forex book graphic

Beginner Forex Book

Your ultimate guide through the world of trading.

Get Forex Book

Check Your Inbox!

In our email, you will find the Forex 101 book. Just tap the button to get it!

FBS Mobile Personal Area

market's logo FREE - On the App Store

Get

Risk warning: ᏟᖴᎠs are complex instruments and come with a high risk of losing money rapidly due to leverage.

76.5% of retail investor accounts lose money when trading ᏟᖴᎠs with this provider.

You should consider whether you understand how ᏟᖴᎠs work and whether you can afford to take the high risk of losing your money.

OIL: status update

OIL: status update

Information is not investment advice

Long story short

After the failed meeting of OPEC+ on March 5, which essentially fell apart on that day, WTI oil plunged to the range of $25 per barrel and recently touched $20. So far, that mark has served as a bottom point for the black gold in the context of the price war, decimated global demand and an increasing oversupply. Recently, however, the US President Donald Trump called on Saudi Arabia and Russia to come to an agreement and announced an expected (or rather hoped for) 10 to 15mnl bpd slash of the global oil supply. That immediately pushed the oil price up to the current level $27 per barrel. No real action has ensued, however. The situation is left hanging in the air – as well as the oil price is.

So where is everyone

Everyone is at home, waiting for the US to step in, basically. That is hardly an exaggeration if even Bloomberg says the following:

1.png

Facts are as following: last week, Donald Trump gave another press conference where he informed that Russia and Saudi Arabia were reportedly one step away from striking a deal to cut the specified 10-15mln bpd (“or even more”, as per the US President). Later on, we received information that the OPEC+ telephonic/remote meeting was planned for this Monday. A while later, it was announced that this meeting is rescheduled to Thursday, with no exact figures or promises from either Russia or Saudi Arabia. Therefore, on the surface, the picture is that both countries are ready to make a deal and willing to negotiate, but only with the participation of the US specifying how much of American oil supply will be cut. And the latter, as Bloomberg rightly pointed out, doesn’t seem to be moving forward.

Two sides

Observers, however, inform that Russia and Saudi Arabia, as eventually OPEC+, do not really need US participation to make a deal. The questionable idea is whether the two countries were really planning to keep the oil price at $20 to drive the US shale oil industry out of business. In reality, even $50 per barrel was not enough for the US shale to make it to the next level so there is no need to have it at $20. In fact, the disastrously low oil price pushing small American oil businesses into oblivion just leaves more room for giants like Exxon to take over their remainders once they die and expand it back and even beyond, but with a firmer grip. That’s why a theory of Russia/Saudi Arabia pressing on the oil price to press on the US shale is likely just a theory. Why are we here then? Probably, we will never know for sure, unless Donald Trump, Vladimir Putin, or Mohammed bin Salman express their will to share with us their private conversations. We are yet to see, though, if the deal gets sealed this Thursday.  

WTI_OilH4.png

 

Similar

How to Stay Calm and Trade on Uncertainties

Despite the negative news and worrying headlines, we recommend traders to make mental reframing of the situation. This way, you can look at the market from a different perspective. Let’s observe how you can take advantage of the uncertainties and make the fundamentals work for you!

Popular

Gold isn't saving investors from inflation

Many investors treated gold as a protection against inflation. However, last week, gold lost its major support and dropped despite rising inflation. Why did it act like this?

Bitcoin Skyrockets Ahead of ETH Merge and US CPI Release

First, "ETH merge" Google requests are on the rise. At the same time, "buy ETH" requests are at their two-year lows, which is quite a negative factor ahead of the vast update. The community either doesn’t believe in the success, or they are following the "buy the rumors – sell the news" rule and waiting for the massive dump after the merge.

Choose your payment system

Feel the Team Spirit

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