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FOREX Chart Of The Day: Will The Price Of Oil Rally To $75.00?

Do you trade Oil?

The recent OPEC meeting highlighted a potential opportunity to see Oil prices continue the rally and head towards the major $75.00 level.

Watch the video to learn more…

Hi, and welcome to this Blueberry Markets video update with me, John Kibbler, Head Currency Analyst.

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In this video, we’re going to talk about oil, and why we could potentially see the price of oil heading a lot higher in the next month or so.

We could potentially see the highs of $70 or at least $75 soon. The reason is that of the recent OPEC meeting among its members.

I’ve got in front of us some details that I wanted to read from Forex Live, a news outlet here, covering the OPEC story as it appears.

Essentially, what we’ve had is some oil headlines being leaked. It’s leaking because everything is online at the moment. It’s highlighted here by Adam at Forex Live. What’s happening is that they’re looking to continue what they’re doing now and keeping the supply very minimal until April. It’s going to give oil markets a bit of a boost. Now, there are some details here that suggest that Russia is making a case for increasing supply.

Now, oil is very much based on supply and demand. When the supply is choked, the price will go up because there’s less of it, making it more valuable. It’s like any commodity.

It’s what’s driving the oil markets high today. It rallied this move quite a bit here. We see on the weekly charts that it has been coming from this meeting that’s occurring.

Now, OPEC has agreed with Russia and allowed them some modest increase in oil output in April. There’s a report saying that the Saudi will keep their voluntary 1,000 barrels per day and a cut-through in April. So, this suggests that there’s a case for the price to continue to the upside with oil.

Now, this is a bit of a tremendous move that we see today. The trend is very much up, and it’s been for a while. For me, oil was bullish ever since we broke above $44, and we’ve seen that go on a great run since. At the moment, the price is capped at these hot wells. We’ve seen that the price is coming into this key area, around $64 to $65.

If the supply is going to continue to get choked, then essentially, the price or the value of oil should continue to drive higher. I think if we break above this area, here, then the next stop for oil is back towards the $75 area. It’s where we saw a massive sell-off in 2018 from oil. I wouldn’t be surprised if we did see prices head back towards this key level.

The way I’ll be watching this now is to wait for the weekly to close above this area. If the weekly closes above this area, I would like to see a bit of an accumulation; a bit of sideways price action. If we get a little bit of sideways price action holding around this $65 level, this would be an excellent opportunity to look for buying opportunities on oil, with the market potentially heading up to that $75 area.

Keep an eye on oil. There’s a good case for the market to go to the upside.

I’ll speak to you in the next video.

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