Will oil rise to $50 per barrel?

By 08/07/2020News
Morning Stock News

Gold   1693,50

EURUSD   1,0799
( -4,21%)

DJIA  24115

OIL.WTI  25,095

DAX   10609

World stock markets show mixed dynamics on Tuesday. Coronavirus is not retreating and there are more and more fears about the second wave of the epidemic. Will the markets react to this?



The focus is on another stimulus package from the US government. It is expected to give out money to those who currently have low income. The technical picture on S&P500 remains positive. The index is above the daily SMA200, which is at 3017, but on Tuesday it is trading below the opening price by 0.6%.
The DAX index showed negative dynamics on Tuesday and closed 0.9% below. The data on industrial production growth in Germany was weaker than expected. On the other hand, the data shows that European industry is struggling successfully with the fall after the coronavirus pandemic and has almost overcome the damage.

Pound Sterling

On Tuesday, the pound reaches another high over the past few weeks and is steadily moving towards 1.2600. A break-up of this level will leave almost no chance for the bears to enter the market.


Finally, an attack of $1800 an ounce on gold. As we expected, the price stormed off with a powerful impulse in literally 2 hours. For buyers of gold it is very important now to consolidate above the level of $1800, but there may be a slight correction from this level down.


WTI oil is growing on Tuesday after information from the U.S. Department of Energy on the decline in U.S. oil production by 600 thousand barrels per day. After such statements the price of WTI crossed the $40/bbl mark and headed higher.
From now on the oil is waiting for the resistance level of $41.50. The focus will be on today’s data on U.S. crude oil reserves, which last showed a significant decline.
Production around the world is increasing, which entails the need for the most important energy source. Therefore, it is likely that the current dynamics will be interrupted and the oil will start moving towards the level of $50 per barrel, where it was at the end of February.

What’s waiting for us today?

01.50 Payment balance excluding seasonal fluctuations in Japan for May
11.00 Publication of the EU economic growth forecast
16.30 US crude oil reserves

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