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.

The vast majority of retail client accounts lose money when trading CFDs.
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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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Oil Prices Begin To Soften After Recent $81.37 Highs

On the first day of trading in 2023, USOIL hit a recent high. USOIL began going down on the second day of 2023 amidst increased fears of a looming recession, with markets now awaiting more cues on US monetary policy from the FOMC December minutes.

USOIL 4 hour chart

USOIL – 4 hour chart

Crude oil markets were dealt a double whammy into the first session of the year after the International Monetary Fund warned of a potential global recession in 2023. Despite the uncertainty over rising COVID-19 cases in China, this certainly creates doubt about a recovery in oil demand. Oversupply concerns continue to cloud the market. Top oil exporter Saudi Arabia is expected to cut prices for its flagship Arab Light crude grade to Asia in February after suffering a 10-month low this month.

On the other hand, market traders fear that the US ISM manufacturing data will slow down. Moreover, a sustained rise in US interest rates could weigh on economic activity and potentially trigger a recession in 2023, a pessimistic scenario for crude demand. Therefore, the prospect of a recession that started wild downward swings in oil prices is expected to cause more downward pressure in the near term.

Last Updated: 04/01/2023

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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