Market Analysis: The Probability of Oil Prices Rising to $100 Is Increasing

FXOpen

This week, Saudi energy minister Prince Abdulaziz bin Salman visited Moscow to discuss plans for oil production in the context of the Israeli-Palestinian conflict. The Russian president announced that Saudi Arabia and Russia's production cuts are "likely" to continue.

Meanwhile, Magid Shenouda, deputy chief executive of commodities trading giant Mercuria, told the industry conference in the UAE that oil prices could reach USD 100 a barrel if the situation in the Middle East worsens.

The chart shows that USD 100 a barrel has become more likely due to price action:
→ in August, a range was formed (shown in purple), from which the price moved up, indicating that demand had gained dominance over supply. And it looks like this zone may provide support to the bulls;
→ bulls can also count on support from the lower border of the parallel channel (shown in blue) and events this week show that this line provides significant support;
→ the price closed the bullish gap of Monday – from the point of view of technical analysis, the chances of growth have increased.

The weekend is approaching. If the coming days also bring an escalation in Israel, it is possible that this will give a new impetus to the price towards the psychological mark of USD 100 per barrel.

Start trading commodity CFDs with tight spreads. Open your trading account now or learn more about trading commodity CFDs with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

Latest articles

Shares

JPMorgan (JPM) Shares Rise Over 4% Following Earnings Report

On Friday, before the market opened, JPMorgan (JPM) released its Q3 earnings, which exceeded expectations:

→ Earnings per share: Expected = $3.99, Actual = $4.97
→ Revenue: Expected = $41.4 billion, Actual = $43.4 billion

CEO Jamie Dimon praised the strong results

Indices

S&P 500 Reaches Another Record High

As shown by the S&P 500 chart (US SPX 500 mini on FXOpen), the leading US stock index set its 45th record of the year, closing above 5800 on Friday. This marks the fifth consecutive week of growth,

An Ascending Channel Pattern: Unique Features and Trading Signals
Trader’s Tools

An Ascending Channel Pattern: Unique Features and Trading Signals

Trading in financial markets can be a challenging task, but with the right tools and techniques, it can also be an exciting experience. One of the indicators that can help a trader build a strategy is the ascending channel pattern.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% 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.