Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Dmitriy Gurkovskiy
Crude Oil WTI Brent

The statistics published by Baker Hughes last Friday showed that the Oil Rig Count in the USA reached the lowest level over the previous 31 months: the indicator lost 8 units and now equals to 684. The total number of rigs lost 7 units, down to 817 overall. As a result, the actual reading is close to April of 2017. Since the beginning of 2019, the indicator has dropped 23%, but without influencing the total oil extraction as it has added 8% over the same period.

The latest numbers showed that the daily oil output in the USA stopped at 12.6M. The EIA Crude Oil Stocks Change is increasing (+8M barrels over a week by November 8th).

Know where WTI Crude Oil is headed? Take advantage now with 

75% of retail CFD investors lose money

All fine and dandy, and the reason for oil stocks growth can be easily explained by seasonality, but market players are anxious as they continue following the trade conflict between the USA and China. Earlier, US President Donald Trump said that he wasn’t ready yet to consider the possibility of completely removing import tariffs on Chinese goods introduced in the past.

As we can see in the H4 chart, Brent is forming the fifth structure of Flag correctional pattern. Today, the pair may fall to break 61.83 and then continue trading downwards with the target at 60.60 to complete the correction. After that, the instrument may form a reversal pattern for one more ascending structure towards 64.40. However, the “correction” scenario may no longer be valid if the price grows to break 63.00. in this case, the market may resume trading inside the uptrend to reach 64.40б at least. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line is moving downwards to reach 0. Breaking it may boost the downtrend.

Stay tuned to the RoboForex Analysis & Forecasts page for exclusive financial forecasts and professional expert analysis.

In the H1 chart, Brent is consolidating around 62.10. Possibly, today the pair may form a new descending structure towards 61.83 and then start another growth to reach 62.43. After that, the instrument may fall to reach 61.21, thus forming a wider consolidation range between 62.43 and 61.21. If later the pair breaks this range to the downside, the instrument may continue falling towards 60.60; if to the upside – cancel the correction. From the technical point of view, this scenario is confirmed by Stochastic Oscillator: its signal line is moving below 50. Practically, the indicator suggests that the instrument is moving in the middle of the fifth correctional structure. The indicator is expected to start another decline to enter the “oversold area” below 20.

By Dmitriy Gurkovskiy, Chief Analyst at RoboForex


Any predictions contained herein are based on the authors’ particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.