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The vast majority of retail client accounts lose money when trading CFDs.
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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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Oil Prices Look for a Bottom with OPEC and Dollar

Oil prices rallied this week and are seeking a bottom on a weaker US dollar and from OPEC. 

The Federal Reserve raised interest rates again and added a reasonably hawkish tone, but the dollar did not capitalise.

USOil – Daily Chart

USOil – Daily Chart

Oil prices have shown the potential for a price bottom around the $70 mark and could make a charge for the resistance near $90 in the coming weeks. 

Traders have turned positive on oil this week as China begins to reopen its economy. Still, the overall situation has followed OPEC, which announced in early October it would slash production. The group also repeatedly cut its demand outlook in recent months while in October. If OPEC’s forecasts for the rest of the year are accurate, then the global market should be balanced in the first quarter. Saudi Energy Minister Prince Abdulaziz bin Salman recently remarked that members must show “vigilance and caution,” indicating a continuance to defend the downside on oil. 

The US dollar declined this week despite the Federal Reserve’s 50 bps rate hike. The central bank had warned that it would start slowing the pace of its rate hikes, and it is likely that any future rise in interest rates is becoming priced in. 

Another bullish indicator for oil prices was an ability to shrug off a large build in crude inventories. Crude stocks increased by 7.82 million barrels, according to the American Petroleum Institute (API), after a drop of 6.42 million barrels in the previous week. Analysts had expected another decline of 3.91 million barrels. 

US crude oil inventories have grown by 14 million barrels this year. In comparison, the nation’s Strategic Petroleum Reserves have sunk by nearly 15 times that number by 211 million barrels.

Last Updated: 16/12/2022

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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