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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 Mixed as China Moves Towards Economic Reopening

Oil gave up some of its two-day gains as traders remain cautious over a Chinese economic reopening.

Oil prices dipped on Wednesday over concerns that rising COVID-19 cases in China could slow its economic recovery as it unwinds its pandemic restrictions.

Oil rose to its highest in three weeks on Tuesday as traders hope for a fuel demand boost. China said it would halt its quarantine for inbound travellers on January 8. However, Chinese hospitals have been under pressure due to a surge in virus cases.

USOIL – Daily Chart

USOIL – Daily Chart

Oil traded at $80 on Tuesday but slipped to $78.63. The resistance is now set for further gains in the near term. 

US crude inventories dropped by 3.1 million barrels for the week ended December 14. That was very different from a build of 7.8M barrels reported by the API for the previous week. Economists had been expecting a draw of 167,000 barrels. The more significant draw in oil stocks came as fresh demand worries circulated among traders. Large storms over Christmas are also set to disrupt energy demand, with production being shut down in certain areas.

The API data also showed that gasoline inventories increased by 4.5M barrels last week, and distillate stocks rose by 830,000. US crude oil stocks were estimated to have fallen 1.6 million barrels last week alongside distillate inventories, a preliminary Reuters poll showed on Tuesday. 

However, traders noted that trading volumes this week are lighter-than-usual as the end of the year approaches, adding to the volatility in oil prices. Next year will continue to add uncertainty with China reopening, lower Russian output, and further OPEC+ cuts. Russia announced that it will ban oil sales from February 1 to countries that abide by a G7 price cap imposed on December 5.

Last Updated: 29/12/2022

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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