Should you buy or sell oil while the price is at $82 per barrel?
- 2021-10-20
Yesterday, oil slightly dropped from the high of 82.952 to 81.052, which equivalent to $1.9 in the actual market or $1,900 in derivatives trading.
Chinese’s coal price and others products has slight, which caused to the dip in the oil price yesterday. The oil has peaked the highest of level in couple years due to the drop of the world coals and gas consumption, while diesel and fuel have been encouraged to be used for the energy production.
Mr. Vivek Dhar, the commodities analyst of Commonwealth Bank stated that “Finally, the coal consumption of China has been increased in order to settled down the shortage of the energy”. Oil futures of West Texas Intermediate (WTI) downed by $0.30 or 0.4%, $82.66 at 03:16 (GMT). Brent oil futures dropped by $0.43 or 0.5%, $84.675.
China electricity board said that the National Development and Reform Commission has discussed about the support of the government on the coal price in the meeting with the core producers. The NDRC stated that they will guarantee that the coal’s mint will continue operate with the full capacity in order to generate at least 12 million tons production per day, which increased by 1.6 million tons from the late of September.
The market has been impacted by the date from the American Petroleum Institute, which increased the oil stock by 3.3 million barrels for the week of 15 October, accordingly the market report. The American Petroleum Institute said it is over the forecast of the 9 investors, which expected the increased of 1.9 million barrels, according to Reuter. Nevertheless, the fuel and petroleum such as diesel and aircraft fuel slight over the expectation of the analysts, which they expected the higher demand.
For the trading advise, investors shall short between $82 to $82.52, set profit target at $80.50 and stop loss at $83.20.
Analyzed by: Mr.Long Samnang, Independent Analyst