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The vast majority of retail client accounts lose money when trading CFDs.
Important Notice - Fraud awareness
Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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Crude Oil Receives Price Boost from OPEC+ Production Cut

The price of crude oil got a lift from the latest OPEC+ meeting, where a production cut was announced.

Oil prices had fallen last week to lows below the $80 level and have since rallied to $83.

USOIL – Weekly Chart

“Renewed interest in oil was ignited on press reports over the weekend speculating on the potential for a significant production cut of 1 million barrels a day or more when OPEC+ meets on Wednesday to shore up the market in a time of falling demand due to the sputtering global economy,” said Colin Cieszynski, market strategist at SIA Wealth Management.

Brent crude prices soared to $130 a barrel in the wake of Russia’s invasion of Ukraine, but the soaring dollar has taken the wind out of crude’s sail.

Meanwhile, Goldman Sachs believes that the US has surrendered its oil sovereignty to the Middle East. In an interview with CNBC, Jeff Currie, who is Goldman’s global head of commodities, said OPEC now has an incentive to trim output because it is the only oil producer in the world with space capacity,

“I like to argue that the old oil order is back,” he said. “OPEC is probably more powerful than it’s ever been in its 60-year history since its inception. One of the reasons is that we have not been investing in alternative energy sources. So, they’re really the only game in town.”

Analysts have pointed to Saudi Arabia and the UAE, in particular, as OPEC members with excess production capacity.

Crude oil trading saw its lowest levels after the January global central bank hiking spree. Last Wednesday, the EIA reported a crude oil inventory draw of 200,000 barrels for the week to September 23. The week before had seen a 1.1-million-barrel build on inventories. The surprise draws on Wednesday came after the American Petroleum Institute (API) had forecast a 4.15-million-barrel stock increase for the week.

Last week in the Dallas Fed poll, oil and gas executives cooled their year-end oil price expectations. In the latest survey, they were reduced from an average of $107.93 last quarter to $88.74 per barrel. The most pessimistic executives saw prices at $65 per barrel, while the bulls have reduced their high-end price from $160 per barrel to $120 per barrel.

Last Updated: 04/10/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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