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Oil prices rally more than 2.5% on reports that United States likely to end waivers for Iran sanctions. The news widely reported across major newspaper.
This definitely is a good news for oil markets and companies.
From the charts below, we can see that WTI and BCO are in strong uptrend from the bottom in last week of Dec 2018. The trend break the 61.8% Fibonacci level and the next resistance for BCO is 79.50 and WTI is 70.45.
In short term, we will see the trend continue until further notice. BCO D1 Chart - 22 APR 2019 https://www.tradingview.com/x/VorZP41U/WTI D1 Chart - 22 APR 2019 https://www.tradingview.com/x/912hvezh/
This may positively affect oil export country and their currencies, such as Russia, Canada, Arab Saudi, United States, Malaysia, Brunei, etc. However, it might also adversely affect oil import country such as India.
Equity investor can also buy more oil producing companies such as Shell, Exxon Mobil, Petro China, Chevron. Especially those companies still in recover state (under-valued) from the previous huge drop in oil price, the profit will be significant in long term as they not yet fully benefits from this trend.
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