The bullish rally in the oil market | 13 12月 2019

The bullish rally in the oil market


#WTI:


For the last week WTI was up 7.3%. We are expecting a continuation of the bullish rally in the oil market. OPEC+, which includes ally Russia, agreed in Vienna on Friday to reduce its output limit by another 500,000 barrels a day, adding to the previous 1.2 million bpd pact that will remove 1.7% from world supply altogether. OPEC’s de facto leader Saudi Arabia, meanwhile, pledged to cut another 400,000 bpd of its own if the rest of OPEC keep to their deal. The kingdom will pump 9.7 million barrels a day, Saudi Oil Minister Abdulaziz bin Salman said.


Trading recommendation: Buy 58.55 and take profit 59.90


The bullish rally in the oil market


XAUUSD:


Investors are increasing long positions in “high-yield” assets, which will negatively affect the value of precious metals. Investors are expected the end of the trade war between the United States and China. Beijing has announced a partial lifting of duties on U.S. soybeans and pork. This is an important step towards a trade agreement. The upward trend in the U.S. dollar will put additional pressure on the value of gold. Investors are buying the dollar after the publication of positive macroeconomic statistics on the labor market for November. The unemployment rate ticked back down to its lowest level in nearly half a century and wage gains remained near their strongest in a decade, the Labor Department's closely watched monthly employment report showed.


Trading recommendation: Sell 1464 and take profit 1451.


The bullish rally in the oil market


#SP500:


We are expecting new records in the U.S. stock market this week! For the year, the S&P 500 is up about 26%. Optimism over a U.S.-China truce has helped push the major Wall Street indexes to all-times highs recently. Trade talks between Washington and Beijing could end this week with the signing of an agreement. Positive macroeconomic statistics on the labor market will provide additional support to the stock market. Nonfarm payrolls rose by 266,000, the Labor Department said Friday, handily topping expectations for a rise of 186,000. That was the biggest rise in 10 months.


Trading recommendation: Buy 3141.5 and take profit 3160.3


TRADE OILS WITHOUT SWAPS!

 

David Johnson
Analyst of «FreshForex» company
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