13.12.2022 14:14

Caution, wild oil! Speculators close the profit

Dear Clients and Partners!

Caution, wild oil! Speculators close the profit Nervous volatility in the range of $5 per barrel will be the norm for intraday dynamics until the market chooses a strategy for behaviour in the face of limited Russian oil prices. The accident at the Keystone oil pipeline did not stop the fall, so China remains the current pressure on the price.Oil is hanging at the 2022 low, technical indicators show strongly oversold, but the market bottom is still far away.Visit of the Chinese leader to Saudi Arabia remained in the shadow of the euphoria of European sanctions. Nevertheless, Xi Jinping announced a new era of relations between countries. By the way, Mr Xi offered the Saudis to pay for oil in yuan and did not receive a formal refusal.China has refused to participate in such sanctions, and Intermarket price control mechanisms are only being created. Asian private refineries continue to buy Russian raw materials  for them, profit is more important than politics. They are not yet worried about the risk of cargo blocking due to EU sanctions  the bulk of purchases are made on CIF or CFR terms, so the seller is responsible for shipping and insurance. It is also believed that the shipments were bought in Chinese yuan rather than US dollars and were financed through local banks and institutions.A price cap of $60 is meaningless until the global trend reverses upwards. Those who are ready to buy controversial oil are trying to assess the risk of EU sanctions, and are looking for options for political blackmail to receive discounts. China, India, and Turkey received discounts in the range of $6-12 for the last ordered batches of Russian oil.Spread between URALS and Brent is growing and it doesn't matter how much money Russia loses  speculators are interested in the levels to which the price may fall and where they will have to start up. This means that the volatility of the oil market will only increase.Profits to yall!#ForexChief #volatility #RussianOil #Labor #forexnews #stocks #worldnews #Brent #urals

Sincerely yours,
ForexChief Team