Oil is the most preferred commodity in forex trading. There are two indexes there – WTI and Brent and
each one of them corresponds to their buyers accordingly. Since oil is one of the most valuable resources
on earth – the prices are affected by almost everything – currency fall, the political dynamics, geopolitical
steps, world around us, and more.
Although the lockdown sparked a positive recovery trend in Oil prices increase in the number of
infections of COVID-19 cases in the US put the brakes and they inched lower on 8 and 9 July but still, the
positivity remains in the market.
Higher crude oil imports are leading to huge positive as per the chief financial officer at Velandera
Energy, Manish Raj. He is forecasting a growing domestic oil demand and as the transport of oil has
started too, oil demands will grow surely.
Data from The Energy Information Administration reports that US crude inventories rose by 5.7 billion
barrels on July 3. The huge demand and increasing imports are leading to solid build in oil inventories.
It seems that the market still has the possibility of going down so it will be a high time for investors to
buy oil at cheaper rates.
WTI (West Texas Intermediate) Crude Oil market was sitting at resistance for few days but it pulled back
on Thursday and our forex signal provider is saying there is still a possibility for more dip.
Brent Markets was going through volatility and it also pulled back on the 9 th of July. Comparing it with
the WTI market, Brent Market will go up for some time. Forex tip is that the top-level may reach 45.50
USD but you have to keep a close eye on the prices for the coming days. There is an opportunity lurking
there.
The main cause behind this turbulence is the rising number of Covid-19 cases in America and it is
affecting the production capacity of crude oil. These huge shifts in production capacities may lead to
undersupply which is making the market a little bit afraid about the future. Despite all this, the demand
for Gasoline is ever increasing. Recently the imports in the US jumped by 1.8 million barrels per day to
3.2 million per day.
In concluding words, the world seems to be gradually coming out of the pandemic and things are going
back as they were, but still, there is some speculation about the fall and that fall will be the perfect
opportunity to make the move.
