ForexEzy
No Result
View All Result
  • Top Forex Advisors
    • Best Forex Robots
    • Best Forex Signals
    • Best Managed Accounts
  • Top Forex Brokers
    • Best Forex Brokers
    • US Forex Brokers
    • UK Forex Brokers
    • MT4 Forex Brokers
    • MT5 Forex Brokers
    • Zero Spread Brokers
    • Best PayPal Brokers
    • TradingView Brokers
    • Social Trading Platforms
  • Top Review Platforms
  • Forex Education
    • Getting Started
    • Forex Basics
    • Forex Trading Strategies
    • Money Management
    • Risk Management
    • Technical Analysis
    • Fundamental Analysis
    • Trading Psychology
    • Social Trading
    • Automated Trading
  • Forex Tools
    • Forex Robots
    • Forex Indicators
    • Forex Signals
    • Forex VPS
  • Forex Forecast
  • Crypto
    • Best Crypto Exchanges
    • Best Crypto Bots
    • Crypto Guides & Forecasts
  • Top Forex Advisors
    • Best Forex Robots
    • Best Forex Signals
    • Best Managed Accounts
  • Top Forex Brokers
    • Best Forex Brokers
    • US Forex Brokers
    • UK Forex Brokers
    • MT4 Forex Brokers
    • MT5 Forex Brokers
    • Zero Spread Brokers
    • Best PayPal Brokers
    • TradingView Brokers
    • Social Trading Platforms
  • Top Review Platforms
  • Forex Education
    • Getting Started
    • Forex Basics
    • Forex Trading Strategies
    • Money Management
    • Risk Management
    • Technical Analysis
    • Fundamental Analysis
    • Trading Psychology
    • Social Trading
    • Automated Trading
  • Forex Tools
    • Forex Robots
    • Forex Indicators
    • Forex Signals
    • Forex VPS
  • Forex Forecast
  • Crypto
    • Best Crypto Exchanges
    • Best Crypto Bots
    • Crypto Guides & Forecasts
No Result
View All Result
ForexEzy
No Result
View All Result
The World’s Leading Social Trading Platform
Try now
Home Forex Market Commentary

Expected Increase of Oil Production in 2021 may Increase the Commodity Price

by Richard Brase
January 2, 2021
in Forex Market Commentary
0
Expected Increase of Oil Production in 2021 may Increase the Commodity Price
0
SHARES
11
VIEWS
Share on FacebookShare on Twitter
The Best Forex Robots Report Is Already Here!
best forex robots
Check out 30+ best expert advisors with daily updated live results and statistics
Click Here

Introduction

  • Economic recovery is expected into 2021 to drain the oil oversupply experienced in the first quarter of 2020.
  • Crude oil prices will test the $65 mark before the end of 2021. Slow recovery may push down the prices.
  • The US is seeking to increase oil export in India, which is the third-largest oil consumer.

Oil prices are set to rally with growing economies increasing demand for the commodity and ease restrictions. The year 2020 has seen the price of US WTI crude turn negative. Contracts for oil futures fell below the zero marks. However, with the successful roll-out of vaccines, open economies, and the resurgent transport industry, we expect a spike in 2021.

Demand-supply factor

The December contract for Brent crude oil rose on 29th December 2020 to $51.18 a barrel, an increase of 0.59% in the run-up to 2021. WTI Crude rose by 0.67% to enter the trading day at $47.94. A 20-year analysis shows that Brent Crude Oil peaked in June 2008 at $166.46 a barrel, with WTI crude rising to $139.148 a barrel in the same period.

Crude Oil WTI

According to OPEC, the world’s “paper-market” oil consumption in June 2008 stood at 87 million, with its actual market demand at 1.36 billion BPD.

As of 2019, the US topped the world’s oil consumption at 19.4 million BPD, followed closely by China at 14 million BPD. WTI crude finished December 2019 at $61.85 a barrel at this consumption rate, while Brent Crude reached a high of $64,28. The price of crude oil may be headed to the pre-COVID era due to increased industrial activities in growing economies.

At the beginning of December 2020, OPEC and its partners agreed to increase oil production to 500,000 barrels per day. This process is set to start in January 2021, as the oil body expects heightened consumption at the time. Although the OPEC+ meeting plans to sustain the production cut to 7.7 million BPD through to March 2021, increased demand will force a slight increase.

In India, the third quarter’s industrial output grew by 3.6% after contracting 17.5% in the first quarter. The industrial mining index was healthy at 98, manufacturing at 130.7, and electricity at 162.2. The electricity index grew at a rate of 11.2% YoY. India took advantage of the low international crude oil prices by importing more than 270 million oil barrels in May 2020. With its primary oil source being the Middle East, India has a strategic partner in Iraq. The country’s crude oil import reached 4.4 million BPD in 2019, becoming the largest supplier at 22% of India’s oil import.

The US is also rushing to increase its stake in the Indian crude oil demand market. In FY 2019-20, American crude oil exports to India reached 5.4 million tons, up from 1.9 million tonnes in 2017. India’s fast-paced oil consumption is not slowing down. This demand will spill over to other countries, gradually increasing the price post-COVID.

Risk

Oil prices may contract owing to the new COVID-19 strain recently discovered in the UK. Further, slow economic recovery may trigger a pull in energy prices. The push for renewable energy in the US and Europe will also decrease demand pushing down prices. Stocked oil reserves in India may push consumption from 4.60 million barrels per day recorded in 2020.  

Technical Analysis

Crude Oil WTI

The 200-day simple moving average indicates that light crude oil futures will find support at $53.14 a barrel and $38.71. The 50-day moving average reached a high of $63.56 a barrel, showing a strong uptrend into 2021.  The chart shown above indicates that the Fibonacci retracement level connects near the $57 mark. The uptrend suggests that crude oil price moves to test the $60 and will find resistance at $65 into 2021.

The Best Forex Robots Report Is Already Here!
best forex robots
Check out 30+ best expert advisors with daily updated live results and statistics
Click Here
ShareTweet
Previous Post

An Introduction To Forex Indicators

Next Post

GoldenEye Indicator Review

Related Posts

Gold Price Forecast: Here Are the Catalysts to Watch

Gold Price Forecast: Here Are the Catalysts to Watch

by Tim Baudin
May 31, 2022
0

Gold price will likely remain range-bound until a catalyst arises in the form of the scheduled economic data.Investors await the...

Bitcoin Price Prediction After the Hawkish Fed Decision

Bitcoin Price Prediction After the Hawkish Fed Decision

by Chintan Patel
January 27, 2022
0

The Bitcoin (BTCUSD) price erased some of the gains made earlier this week as the market reacted to the latest...

USDJPY Range Bound Below 114.00 as NZDUSD Sell-off Persists Below 0.6700

USDJPY Range Bound Below 114.00 as NZDUSD Sell-off Persists Below 0.6700

by Adam Stanley
January 25, 2022
0

US dollar strengthens to two-week highs.USDJPY bounces off one-month lows.NZDUSD sell-off persists. The US dollar bounced back to two-week highs...

USDJPY Forecast as BoJ Retains Interest Rates

USDJPY Forecast as BoJ Retains Interest Rates

by Tim Baudin
January 18, 2022
0

Bank of Japan retains interest rates at -0.1%.US Treasury yields are still rising, thus helping cushion the dollar.Rising oil prices...

Market Analysis: AUDUSD Breakout Looms and USDJPY Tanks on Dollar Weakness as Oil Prices Rally on Supply Concerns

Market Analysis: AUDUSD Breakout Looms and USDJPY Tanks on Dollar Weakness as Oil Prices Rally on Supply Concerns

by Chintan Patel
January 17, 2022
0

US Dollar under pressure after a pullback.AUDUSD breakout looms on dollar weakness.USDJPY bounce back stalls.Oil prices rally on supply concerns.Cryptocurrencies...

Load More

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Best Forex Automated Systems

  • TechBerry 9/10
  • Happy Galaxy 8.5/10
  • Forex Cyborg 8.5/10
  • Forex Fury 8/10
  • FXgoodway 7.5/10
  • Best Forex Brokers
  • Best Forex Robots
  • Best Forex Signals
  • Best Forex Managed Accounts

Top Trading Markets

We are dedicated to demystify the world of forex trading for you – no matter what level you are on.

Categories
  • Automated Trading
  • Crypto Robot Review
  • Cryptocurrency Trading
  • Day Trading
  • Forex Basics
  • Forex Brokers
  • Forex Education
  • Forex Forecasts
  • Forex Indicators
  • Forex Market Commentary
  • Forex Robots
  • Forex Signals
  • Forex Signals
  • Forex Tools
  • Forex Trading Strategies
  • Forex VPS
  • Fundamental Analysis
  • Managed Accounts
  • Money Management
  • News
  • Review
  • Review Platforms
  • Risk Management
  • Social Trading
  • Technical Analysis
  • Top World Traders
  • Trading Apps
  • Trading Psychology
  • Uncategorized
Tags
Acquisition AI Amazon Apple Artificial Intelligence Bitcoin bond yields CEO China earnings earnings report economy Electric Vehicles Federal Reserve financial performance Financial Results forex ea forex software reviews Growth Guidance Housing Market inflation interest rates Investing investment Investors Market Volatility merger mortgage rates net profit Nvidia Oil prices Q2 Results revenue Revenue Growth Sales sales growth Stock Futures stock market stock performance Stocks strategies technology Tesla Video
  • Terms of Use
  • Privacy Policy
  • Compensation Disclosure
  • Risk Disclosure
  • About Us
  • Contact Us

Copyright © 2023 by ForexEzy.com

No Result
View All Result
  • Top Forex Advisors
    • Best Forex Robots
    • Best Forex Signals
    • Best Managed Accounts
  • Top Forex Brokers
    • Best Forex Brokers
    • US Forex Brokers
    • UK Forex Brokers
    • MT4 Forex Brokers
    • MT5 Forex Brokers
    • Zero Spread Brokers
    • Best PayPal Brokers
    • TradingView Brokers
    • Social Trading Platforms
  • Top Review Platforms
  • Forex Education
    • Getting Started
    • Forex Basics
    • Forex Trading Strategies
    • Money Management
    • Risk Management
    • Technical Analysis
    • Fundamental Analysis
    • Trading Psychology
    • Social Trading
    • Automated Trading
  • Forex Tools
    • Forex Robots
    • Forex Indicators
    • Forex Signals
    • Forex VPS
  • Forex Forecast
  • Crypto
    • Best Crypto Exchanges
    • Best Crypto Bots
    • Crypto Guides & Forecasts

© 2023, Forexezy. {copy} {year}