Oil Market Analysis


Fed messaging the key focus for week ahead
Fed messaging the key focus for week ahead

Asian currencies began the new week on a mixed note against the US Dollar index, with the DXY holding on to gains around the 97.5 mark following better-than-expected US retail sales ...

Oil rebounds on geopolitical tensions; Gold steady
Oil rebounds on geopolitical tensions; Gold steady

It has been a rollercoaster trading week for oil markets as investors tussled with conflicting fundamental themes pulling and tugging at the commodity.

Asian stocks ease up on risk-on mode
Asian stocks ease up on risk-on mode

With Asian stocks following Wall Street lower on Thursday, the US-China trade tensions appear to have knocked the wind out of risk-on sails for now. 

Dollar rebounds after US-Mexico deal; dismal US jobs data
Dollar rebounds after US-Mexico deal; dismal US jobs data

The US Dollar index (DXY) has rebounded slightly to trade around the 96.7 level at the time of writing, after the May US non-farm payrolls data came in far below market expectations,...

Dollar weakens amid rising bets of a Fed rate cut
Dollar weakens amid rising bets of a Fed rate cut

The US Dollar Index (DXY) has weakened by about 0.6 percent to trade around the 97.2 mark at the time of writing, after St. Louis Fed President James Bullard suggested that an &ldquo...

Daily analytical report (29/05/19)
Daily analytical report (29/05/19)

Today we are looking at three instruments that are currently undergoing a bearish correction. Although they have the same trend at the moment, it does not mean that their future will...

Risk sentiment undercut; Pound lost in Brexit drama
Risk sentiment undercut; Pound lost in Brexit drama

It is shaping up to be yet another rough, rocky and unpredictable trading week for financial markets as investors tussle with a number of different themes. 

Investors “Sell in May and Go Away”; Oil collapses
Investors “Sell in May and Go Away”; Oil collapses

Stock markets across the globe have been treated without mercy this week as fears over prolonged US-China trade tensions weighed on market sentiment over global economic growth and s...

‘Flight-to-safety’ remains default mode for Sino-US tensions
‘Flight-to-safety’ remains default mode for Sino-US tensions

Asian markets soured further on Friday, following US stocks lower on mounting fears that prolonged US-China trade tensions could have a more drastic impact on the global economy. 

Anxiety hits markets as trade tensions mount
Anxiety hits markets as trade tensions mount

A sense of caution and unease lingered across financial markets today as investors grew increasingly concerned over US-China trade talks falling apart this week.Rising trade tensions...


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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