Oil prices have fallen in last few weeks, but the bullish trend continues for a long term. If USOIL get shows a support at the level of 74.20 and bullish forming, I open long trade.
Why oil is still bullish ? 1. World oil production rose 790 kb/d in August to 101.3 mb/d, with a strong recovery in Libya and smaller gains from Saudi Arabia and the UAE offset by losses in Nigeria, Kazakhstan and Russia. From August through December, growth is forecast to slow, edging up by just 280 kb/d to 101.6 mb/d. In 2022, global production is forecast to rise by 4.8 mb/d, to 100.1 mb/d, and by 1.7 mb/d in 2023 to 101.8 mb/d. 2. Geo-political events The geopolitics of oil and gas can be viewed as resulting from the balance between supply and demand, which affects the power dynamics between energy exporters and importers, energy security, and the military strength of major powers