Oil Market Analysis


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...

US politics continue to drive volatility
US politics continue to drive volatility

US political turmoil has been a massive driver for market movements as of late, and even US data has been getting a second look over the current Trump administration antics. Comments...

NYMEX and Brent post solid revenues in Asia
NYMEX and Brent post solid revenues in Asia

On Friday, crude oil held revenues during Asia trade as market participants bought after steep dips overnight and ahead of American rig count data from Baker Hughes as well as nonfar...

Oil falls on drawdown data
Oil falls on drawdown data

Oil markets have dropped dramatically after the recent crude oil inventories data came out today showing that the drawdown in oil was much weaker than expected coming in at -2.22M (-...

07.07.2016 15:51 The price of oil dropped about 3%
07.07.2016 15:51 The price of oil dropped about 3%

07.07.2016 15:51  Oil prices are down significantly, under the pressure of a report on US petroleum reserves, much weaker than yesterday's data on the API. US Department of ...

07.07.2016 15:13 Crude oil inventories in US declined last week
07.07.2016 15:13 Crude oil inventories in US declined last week

07.07.2016 15:13  Oil: -2.223 (forecast -2.5) Gasoline: -122K (350K forecast). Distillates: -1574K (500K forecast). Cushing: -82K (-400K forecasts).

Oil prices soar on US crude stock draw
Oil prices soar on US crude stock draw

On Thursday, surged, backed up by a report of another dip in American crude inventories and a weakening greenback, though a glut of refined products as well as economic growth worrie...

Oil rises on strong API report
Oil rises on strong API report

The latest American Petroleum Institute (API) weekly inventory data recorded a draw of 6.7mn barrels compared with the expected draw of around 2.3mn barrels and followed the draw of ...

06.07.2016 09:00 Oil is trading slightly lower
06.07.2016 09:00 Oil is trading slightly lower

06.07.2016 09:00  This morning, New York crude oil futures for WTI fell -0.04% to $ 46.58 per barrel. At the same time, Brent oil futures were down -0.10% to $ 47.98 per barrel....

NYMEX and Brent head south in Asia
NYMEX and Brent head south in Asia

On Wednesday, oil prices dipped in Asia as market sentiment dampened following worries regarding Brexit as well as poor demand prospects. In New York, August delivery WTI crude ...


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.