ad
Forex Brokers Award 2020
Vote your favourite broker
Trade 100 Bonus - the best offer on Forex market

Saudi comments at OPEC meeting support Oil price

Nov 12 2018, 02:43 PM (+06) | Forextime.com

 

 

The initial headlines coming out of the OPEC meeting in Abu Dhabi that Saudi Arabia has committed itself to lower production output should be enough to prevent the value of Oil falling any further, at least for now. This meeting is still ongoing and not scheduled to conclude until later on Monday, but it does appear at least on headline that the consensus is that the price of Oil would benefit from less supply heading into 2019.

 

We do feel that the Oil markets will be at risk to volatility as financial markets become more aware over the potentiality of a slowdown in the global economy next year, and that a reduction in Oil supply next year would be appropriate with the risks of lower economic growth.

 

The price of Oil remaining roughly around $70 in Brent Crude and $60 in West Texas Intermediate and consolidating around these levels would be appropriate in the greater scheme of things, considering the ongoing external uncertainties around trade tensions and pressures in emerging markets that are seen as large risks for slowing global growth.

 

If there are concerns over a potential economic downturn, then it is only natural that there will be concerns over demand for commodities like Oil, which is why its current valuation today can be considered as appropriate for where we currently are with the global economy.

Forextime.com

The FXTM brand was initially launched in 2011 with a unique vision to provide unparalleled superior trading conditions, advanced education and state-of-the-art trading tools in the forex industry. As a result of a continuous focus on localizing our products and services to suit each market, together with our successful collaboration with talented and experienced teams from all over the world, FXTM was quickly established as the global trademark it is today.