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The vast majority of retail client accounts lose money when trading CFDs.

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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 Rally on Russian Export Ban

The price of crude oil has dragged lower in the last month, but there is still a chance of a low being in place. 

Crude slumped to lows near $70 but is now trading at $75.25 after gains last week. 

USOIL - Weekly Chart

USOIL - Weekly Chart

If the price of black gold can rally above the September lows at $76.30, we can see a recovery develop. 

The market began changing after Russian exports to the EU cratered by over 50% during the first week of a European embargo. 

According to Bloomberg data, to December 16, total volumes from Russia fell by 1.86 million barrels daily, or 54%, to around 1.6 million. The four-week average was also at a new low for 2022. There were also signs of a shortage of shipping companies willing to transport Russian oil from an export facility in Asia. 

The Russian oil ban could begin to have a real effect on global supplies, leading to a rally in oil prices. 

Any rally in oil is being held back by Chinese demand, and another surge in Covid cases has weighed on crude prices. The Chinese government bowed to unrest and loosened restrictions two weeks ago, but that has reportedly led to a rise in new cases and will hurt the economic outlook once more. 

The virus numbers will affect the “rest of the world due to the size of China’s economy,” said a US State Department spokesperson. “It’s good for China to be in a stronger position vis-a-vis Covid, but it’s good for the rest of the world as well.” 

A tightening in oil inventories is expected in tomorrow’s EIA figures. Gasoline stocks are expected to drop from 4.5M barrels to 1.9M. After a significant surplus of 10M barrels last week, crude oil stocks in the US are expected to show a draw of 167k barrels. 

However, the US strategic reserve has dropped by 211M barrels this year, which is the least crude oil since January 1984.

Last Updated: 21/12/2022

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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