Let’s not be surprised to see oil price rising above 85
From the beginning of next year, OPEC+ countries are to increase crude oil production as discussed in OPEC+ meeting.
It is good news for oil importing countries because supply will overcome demand and therefore price for Crude oil will fall. In theory, it is correct but when we look at charts of Brent oil to USD, it tells us a different story.
After the fear of Omicron variant COVID-19 receded, oil prices immediately increased and broke through strong resistance of 76 levels, which I wasn't expecting to happen but later I realized the factor affecting oil prices is the increasing demand for oil by oil importing countries.
Well, it would be a good idea to stick to a long position and buy on every dips for the next couple of months until oil supply is fully restored by both, OPEC+ and US shale oil producers.
Disclaimer: Above idea is what I think can happen and not a recommendation or advice to buy/sell.
Good luck.
It is good news for oil importing countries because supply will overcome demand and therefore price for Crude oil will fall. In theory, it is correct but when we look at charts of Brent oil to USD, it tells us a different story.
After the fear of Omicron variant COVID-19 receded, oil prices immediately increased and broke through strong resistance of 76 levels, which I wasn't expecting to happen but later I realized the factor affecting oil prices is the increasing demand for oil by oil importing countries.
Well, it would be a good idea to stick to a long position and buy on every dips for the next couple of months until oil supply is fully restored by both, OPEC+ and US shale oil producers.
Disclaimer: Above idea is what I think can happen and not a recommendation or advice to buy/sell.
Good luck.
Comment:
As predicted Oil price has reached close to USD $85 levels.
