The Us Bureau of Labor Statistics will release monthly average hourly earnings, non-farm employment change (NFP), and unemployment rate on June 3, 15:30 MT time (GMT+3).
BofA: oil may reach $100 a barrel next year
Information is not investment advice
Oil is trading near all-time highs these days. It has reached the two-year high last week. Indeed, the demand for fossil fuels is strong, and the uptrend is likely to remain.
Optimistic forecasts from banks
Credible banks have bullish forecasts on oil. Bank of America predicts oil prices will hit the $100 level next year. If crude gets back to triple digits, it will be the first time since 2014! Citi believes oil prices might surge above $80 this summer. Goldman Sachs ranks Canadian oil producers as the most promising because they see oil will grow further. Indeed, the travel bans will be eased and people will start using their private cars more. Thus, the consumption and thus demand will rise.
OPEC+ meeting soon
Such optimistic forecasts add pressure on the OPEC+ members to increase oil output. By the way, they will meet next week on Thursday. If you are interested in trading oil, follow this event to know the outcome as it will influence oil prices. Check our economic calendar to know all the impactful events.
Nuclear talks with Iran
The new president has been elected in Iran. His name is Ebrahim Raisi, and he is subject to US sanctions. Iran insists on removing these sanctions to revive the pact: Iran will limit its nuclear activities in return for sanctions relief. Iran re-started prohibited nuclear work after Donald Trump broke the rule and re-imposed sanctions on Iran. The question is who will make a first move: Biden or Raisi. A deal could lead to Iran exporting an extra 1 million barrels per day, equals to 1% of global supply, for more than six months. After Iran’s president was elected, the US and Iran took 10 days of pause in their talks. Follow the news further.
XBR/USD (Brent oil) keeps attacking the upper line of Bollinger Bands. It has been moving sideways just below $74.00 a barrel for the last few days. The breakout above this resistance level will open the doors to the next round number of $75.00 and then for the long-term price target of $80.00. Support levels are at the midline of Bollinger Bands at $71.00 and the 50-day moving average of $68.50.
As Europe moves into recession, next week may provide us with some amazing trading opportunities. Here they are!
Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.