Oil continued its decline in the last few days and is now heading towards the important psychological threshold of $50. The main reason behind this fall is the escalating trade war between the US and China, which casts further uncertainties about the already weak growth prospects of the global economy, which is likely to in turn contribute to reducing demand for energy.
Also, the latest figures released by the EIA, showed an increase of inventories to 2.835 million barrels, confirming the negative momentum for crude. Only in the last few hours, thanks to a temporary slowdown of the risk-off pressure on markets, we have seen a rebound, but it still appears relatively weak. There are good chances to see, in the next few days, further tests to the support level of $50/51, where buyers will have to prove their willingness to change the trend if they want to avoid another fall to $45 and $42 as it happened in December last year.
Chief analyst at ActivTrades and technical analyst for Italian newspaper 'La Stampa'. Carlo Alberto provides regular commentary for UK outlets including the BBC, Telegraph, the Independent Bloomberg & Reuters. He is also a weekly commentator for CNBC Italy and a columnist for La Stampa. He worked for Bloomberg as their Equity Research Fundamental Analyst before joining brokerage ActivTrades in 2011 to specialize in currency markets and commodities. In 2014 he published a 250-pages book on gold and the gold market, followed in 2018 by a new updated edition.
© 2019 High Leverage FX - All Rights Reserved.
© 2019 High Leverage FX - All Rights Reserved.