Oil Market Analysis


Dollar advances ahead of NFP, while oil remains steady
Dollar advances ahead of NFP, while oil remains steady

The Greenback ventured to a two-week high against a basket of major currencies on Friday morning, amid investor optimism over U.S. tax reforms. Today’s main risk event for the ...

Oil yawns on OPEC extension, Bitcoin volatile
Oil yawns on OPEC extension, Bitcoin volatile

Investors who were banking on OPEC to enforce some “extraordinary measures” to rebalance markets were left empty-handed on Thursday, after the cartel simply agreed on ext...

Equities slide ahead of a busy week; Oil under the radar
Equities slide ahead of a busy week; Oil under the radar

Despite a record high close on the S&P 500 last Friday, Asian equities edged lower, led by Korean markets. Chinese stocks continued to decline after having the biggest one-day se...

Sterling, WTI, and Gold in focus
Sterling, WTI, and Gold in focus

Sterling modestly appreciated on Thursday morning, after U.K retail sales rose by 0.3% MoM in October – a figure above market expectations. However, retail sales declined by -0...

Delay in corporate tax cuts pulls equities and the dollar
Delay in corporate tax cuts pulls equities and the dollar

President Donald Trump and corporate America may not be satisfied with the revised Senate Republican tax plan. The dollar and global equities received a hit on news that Republican s...

Is the oil rally built on weak foundations?
Is the oil rally built on weak foundations?

Crude oil remained in the limelight on Wednesday, as it stabilized around $57 on the back of escalating tensions in the Middle East. Early trading prices initially declined, due to C...

Oil hits a new two-year high; no immediate resistance
Oil hits a new two-year high; no immediate resistance

Oil prices continued to be front and center for traders in a relatively quiet market. Brent crude surged 3.5% to trade above $64 on Monday, after the arrests in Saudi Arabia raised i...

RBNZ set for change on new government mandate
RBNZ set for change on new government mandate

The New Zealand government continues to be in the eye of traders as the current changes to the Reserve Bank of New Zealand look to be fast tracked. So far what we know is that the fo...

Brent touches a new 2-year high, what’s next?
Brent touches a new 2-year high, what’s next?

Oil prices continued to march higher on both sides of the Atlantic early Monday. In the early trading hours, Brent reached a high of $62.44, a level last seen in July 2015, and repre...

Oil primed to jump
Oil primed to jump

Oil markets have been volatile in 2017 and not the one way traffic we saw in 2016. The market has been responding to a variety of factors, the main one being the glut in oil caused b...

Euro treads water as Catalonia Independence deadline looms
Euro treads water as Catalonia Independence deadline looms

The Euro was unsettled during Wednesday’s trading session, as anxiety mounted ahead of Madrid’s looming deadline on Catalonia’s independence. With the region refusi...

Sterling dips after UK inflation report, WTI in focus
Sterling dips after UK inflation report, WTI in focus

Sterling bears made a late appearance on Tuesday, after official figures showed that inflation in Britain climbed to its highest level for more than five years in September.Consumer ...

NZ inflation beats expectations
NZ inflation beats expectations

It's been a strong showing for CPI data released moments ago for the New Zealand economy. The lift to 0.5% q/q (exp 0.4%) is a strong jump and lifts y/y on inflation to 1.8% (exp...

Dollar’s rally stall; Oil & Bitcoin on the move
Dollar’s rally stall; Oil & Bitcoin on the move

After enjoying a 4-week rally, the dollar came under pressure last week falling against most of its major peers, leaving many traders questioning whether the most recent bull run is ...

Oil supported by suggestions of “Extraordinary Measures”
Oil supported by suggestions of “Extraordinary Measures”

Oil prices edged higher during Tuesday’s trading session, as investors pondered over what “extraordinary measures” OPEC may implement to rebalance oil markets in th...

FTSE nears key levels
FTSE nears key levels

It was a day of highs and lows for the UK economy as the political speech from the prime minister did little to quell rumours she may not survive the election, and there could potent...

Geopolitical risks return to the front seat
Geopolitical risks return to the front seat

Demand for safe havens returned on Monday as war of words between North Korea and the U.S. triggered flight to safety amongst investors. The latest comments came from North Korea&rsq...

Trade balance data weighs on NZD this week
Trade balance data weighs on NZD this week

The New Zealand has been the weakest trade for Monday, but that was in part to markets holding off on economic data coming out the following morning. We now know why as trade balance...

Oil swings back into focus
Oil swings back into focus

OPEC members have gathered in Vienna to discuss the current state of monitoring in the oil market and with non OPEC members as well. The main basis of this talk will be to go over th...

Dollar depressed ahead of FOMC decision
Dollar depressed ahead of FOMC decision

The Dollar has drifted lower against a basket of major currencies, ahead of the Federal Reserve decision later today, which is largely expected to conclude with monetary policy uncha...


Analysis of the Latest Oil Market Events

Oil is tangible and one of the most called-for commodities. USA, China and Japan are the largest consumers and importers of oil in the world. Any events and phenomena that trouble supply of “black gold” influence on its price on the oil market. Events such as weather conditions, war, terrorism, political disorders, and the decisions made by the Organization of the Petroleum Exporting Countries (OPEC) can cause its rise or fall in prices on the market. Oil trading refers to a variety of industries and, therefore, is often exposed to changes in the geo-political factors, as well as concerning the behavior of traders.

Oil Market and Analytical Standpoints Regarding this Kind of Market

The oil market is one of the most volatile, respectively, one of the most attractive in terms of investment. Although the trading of oil is a hard task, therefore, for a qualitative oil market’s analysis and oil’s rate is necessary to lend an attentive ear to the standpoints of the leading analysts of the market.

The crude oil technical analysis helps to determine total oil consumption, including the inventories, sales data and oil reports (EIA petroleum status reports). Traders can keep track of these reports and oil market news for better comprehension of the factors that affect the consumption of oil. Global oil market also has a direct effect on the Forex market by means of the germaneness with the dollar. This is due to the fact that the United States is one of the biggest breadwinners and consumers of this raw material. Change in the oil market price affects the intrinsic value of the dollar. In turn, the currencies that are in tandem with the U.S. currency, "look" on the dollar.

As far as oil is constantly taken into account in global business and trade, details that relates to its supply or distribution, will affect reliably the foreign exchange market, including the concomitant oil market analysis. That is why the terrorist attacks or natural disasters like Hurricane "Katrina" that threaten the regular supply of oil, often cause an immediate reaction of the Forex market.

Oil Market Analysis

The aforementioned events are something like shock to the market, making the oil forecast and analysis more difficult for the Forex market players. A more typical scenario usually consists of "fine" movements that occur in inter market relationships when oil trading, which only hint at the fact that the prices might change.

If the trader does not use inter market analysis, very likely he won’t be able to evaluate all these relationship, as well as the effects they exert on the markets, so long as this influence is not greatly substantially.

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