Have You Stayed Behind On Oil?

Have You Stayed Behind On Oil?

MarketWatch reports have noted a massive jump in oil prices, and with the US winter coming along we have seen a boost in demand. After all, what else will keep US households warm?
Brent oil has seen a recent high with a significant price increase to $70per barrel last week followed by even more small gains this week. Prices are estimated to stay at the perfect spot.

 

On a more fundamental note that’s interesting to examine is why we have seen this increase. Apart from the North American cold, the US stockpiles have declined on the back of a weakening Dollar. It seems that OPEC’s (Organization of the Petroleum Exporting Countries) decision to cut down on output has propelled the commodity’s demand to significant levels.

 

Taking a closer look at oil reveals that it is at its highest since 2014! Crude oil has increased by 24% in the last three months and 7% already in 2018 while Brent oil has risen by 21% respectively and 5% since the New Year.

 

So, for now, we see that oil is already marching ahead of JPMorgan’s 2018 predictions, but is likely to fall behind in the second half of the Year as it is predicted that OPEC may end its production cuts. The US will also be increasing its shale production following the recent rally. One thing is for sure, oil is making a rebound.

 

But how can you trade on these? Get your fundamental analysis attitude ‘on’ and take a look at the oil proxies, which are energy stocks, Russian equities, petrocurrencies, and energy credit. These all translate into Ruble, Canadian Dollar and Norwegian Krone according to the Wall Street Bank.

 

Seeing these long charts has traders just waiting for the correction. Will it happen or are high oil prices here to stay?

 

 

Disclaimer:
This article is for educational and informative purposes only and should not be considered as investment or trading advice.

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