It seems that the investment in crude oil contracts is still the best, which could have been invested in popular markets since the beginning of this year. Despite the recent downward correction, the WTI oil contract has risen by over 38 percent from the beginning of January to mid-May.
The last correction, which took place on the oil market, brought a drop in price from approx. 66.5 USD per barrel to 60.80 USD. From the chart and technical analysis around USD 61 were and still are possible key support levels. In this area, there is the first of the typical Fibonacci retracements for the correction - 23.6 percent, and there is a 200-session average known to investors. Such a technical connection together with fundamental factors could support oil prices.
Chart: Oil WTI, D1. Conotoxia trading platform
The current three-day increase is the largest in three weeks, and may be influenced by information about the drop in gasoline inventories in the United States and the rise in tension in the Middle East. The attack on the oil pipeline running through Saudi Arabia, which was carried out by rebels supported by Iran, or attacks on tankers showed quite clearly how much the situation has deteriorated in that region. The Americans even ordered some of their employees to leave Iraq because of the state of greater threat. It is true that Saudi Arabia has already resumed oil transport with its main oil pipeline after the attack, but it should be noted how easy and fast the growing conflict between the US and Iran could disrupt the supply of oil. This, in turn, may translate into a drop in supply and, consequently, an increase in the price of oil.
Daniel Kostecki, Chief Analyst Conotoxia Ltd.
Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal Opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
59% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Trade this news from Conotoxia Ltd. platforms
Go to your account
