Premium analysis by our dedicated team
Jan 6, 2021, 12:08 PM GMT

OPEC Has Done It! Crude's Relentless Hike at a Critical Junction

OPEC's tremendous efforts to stabilise the energy market in the wake of last year's crash, when at one point oil futures were trading below zero dollars per barrel, are starting to pay off. Officials of the organisation had previously stated that members have to join efforts to recalibrate the jolted supply and demand equilibrium; something that they appear to be on track to achieve.

Crude oil bulls have been able to retain control owing to the fact that the previous state of oversupply in the market is now mostly dealt with. Moreover, global demand is slowly but steadily picking up, being driven by vaccine optimism. A clear demonstration of this is the solid manufacturing PMI data in the US from yesterday, which underpinned a pick-up in industrial activity, as well as in new orders.

In other words, there are pretty strong indications to suggest that crude oil can continue appreciating in the near future. However, the price is currently consolidating just below the psychologically significant resistance level at 50.00 dollars per barrel. Arguably, this is the most important benchmark for the commodity since it plummeted below 0 dollars p/b last year.

Profit & Loss
Short Term Long Term Net % Gains
+ - + -
0 0 1.37 USD 0
Short Term
+ -
0 0
Long Term
+ -
1.37 USD 0
Net % Gains

Disclaimer: Your capital is at risk! Trading and investing on the financial markets carries a significant risk of loss. Each material, shown on this website, is provided for educational purposes only. A perfect, 100% accurate method of analysis does not exist. If you make a decision to trade or invest, based on the information from this website, you will be doing it at your own risk. Under no circumstances is Trendsharks responsible for any capital losses or damages you might suffer, while using the company’s products and services. For more information read our Terms & Conditions and Risk Disclaimer.