Tuesday, December 22, 2020 8:32 AM EST
The new strain of coronavirus caused the UK to close its borders in order to attempt to prevent its expansion, and ended up cutting oil’s upward rally short. Oil (OIL) had seen seven weeks of gains, catalysed by the arrival of the COVID-19 vaccine and the expectation of the recovery in demand.
This correction saw Brent (BNO) lose the psychological level of $50 a barrel yesterday, and to move away from March’s highs which it reached last week. Today, Brent is trading at $50 again, but is struggling to hold it by registering a drop of around 1% around noon (CET). As for WTI, which traded above $49 last week, it is now trying to stay above $47, with a 1% decline as well
Source: Admiral Markets MetaTrader 5. Brent Futures CFD Daily Chart. Data range: from December 16, 2019, to December 22, 2020. Prepared on December 22, 2020, at 11:30 a.m. Keep in mind that past returns do not guarantee future returns.
OPEC and its oil-producing partners agreed at their last meeting to slightly ease production cuts but with monthly reviews in the event of unforeseen events that may affect demand, so as not to flood the market and that there is an excess supply. With the new restrictions on mobility, which mainly affect the United Kingdom, uncertainty has once again dominated the market.
So far in 2020, oil has accumulated a fall of more than 20%. The year 2019 ended with a rise of 22%, in 2018 it fell just over 20%; in 2017 and 2016 it added 17% and 52%, respectively.
Disclaimer: The given data provides additional information regarding all analysis, estimates, prognosis, forecasts or other similar assessments or information (hereinafter "Analysis") ...
more
Disclaimer: The given data provides additional information regarding all analysis, estimates, prognosis, forecasts or other similar assessments or information (hereinafter "Analysis") published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:
This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
Any investment decision is made by each client alone whereas Admiral Markets Group AS investment firms (Admiral Markets) shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
The Analysis is prepared by an independent analyst (hereinafter "Author") based on the Author's personal estimations.
To ensure that the interests of the clients would be protected and objectivity of the Analysis would not be damaged Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.
Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, you should make sure that you understand all the risks.
less
How did you like this article? Let us know so we can better customize your reading experience.
