β#ForexChief #Oil2022 #forexnews #OPEC #PBOC #worldnews #forexmarket #BRENTβ
π’οΈ Oil 2022: we will profitably sell panicβ
π Since the beginning of year, all benchmarks have added more than 50% to their value, although in December Omicron spoiled the mood of buyers a little. If the South African variant of the infection turns out to be less lethal than its predecessor, this will be received with optimism not only by financial markets but also by the world economy as a whole.
β
The confident policy of OPEC+ is still considered a guarantee of the stability of the bullish trend, which, despite the panic calls from the White House to increase production, maintains the chosen pace. The Alliance has exceeded its obligations to cut production, but market is already used to it. Problems with domestic gasoline prices in United States had to be solved independently, using local methods.
β
China remains another unknown in the oil market formula. In 2021, the Celestial Empire imported 7% less than in 2020, but if a year ago it increased its reserves by 1.2 million b/d, then in the outgoing year it stopped doing so. Thanks to the monetary expansion of PBOC and the high growth rate of WFP, China will be forced to increase purchases, which will positively affect prices.
β
The pressure on OPEC+ from the US will certainly continue, but the control of market is still in hands of the Saudis. If Cartel did not adjust its policy in December, when the uncertainty around Omicron was more serious, then at the summit on January 4, it is likely that the strategy of a monthly increase in production by 400 thousand b/d will remain.
β
Traditionally, we remind you: the weakly liquid holiday market is already ready to move the StopLoss of unwary speculators on both sides of the price, so any trading activity this week is not recommended.
β
ForexChief company thanks all of you for effective cooperation and wishes everyone personal victories, financial success and peace in New year.
β
Happy holidays!