Bullish rally in the oil market! | 29 November 2019

#WTI:

We are expecting a bullish rally in the oil market. The two-month highs in oil prices earlier this week came on a Bloomberg report that OPEC and Russia were likely to extend existing production cuts by another three months to mid-2020 when they meet over Dec. 5-6. In the Permian, activity is slowing among the larger players. American oil and gas corporations moderately increase production of hydrocarbons. Small companies are cutting back on oil production because they are struggling to attract loans. We are expecting to test the psychological level of 60.00.

Trading recommendation: Buy 57.71 and take profit 60.00.

#GAS:

United States working natural gas volumes in underground storage dropped by 94 Bcf week on week, decreasing by nearly triple the five-year average. This is a positive signal for the natural gas market! The massive draw was driven by temperatures falling about 10 degrees below normal across the eastern half of the US. This resulted in residential and commercial demand gaining 10.3 Bcf/d week over week, according to data from S&P Global Platts Analytics. Total supplies increased by 0.8 Bcf/d to average 97.3 Bcf/d. Production stayed steady, and the increase in supply was led by a nearly 1 Bcf/d increase in net Canadian imports into the Northeast US, where colder weather boosted demand by more than 6 Bcf/d, accounting for roughly half of the overall US demand growth.

Trading recommendation: Buy 2.622 and take profit 2.79.

#SP500:

We are expecting a bullish rally this week. IHS Markit said its purchasing manager’s index for manufacturing rose to 52.2 in November from a final reading of 51.3 in October, while its preliminary services PMI increased to 51.6 this month from 50.6 last month. This is a positive signal for the U.S. stock market. The end of the trade war between the United States and China will have a positive impact on the American economy. “We have been working actively to try not to have a trade war. We did not initiate this trade war, and this is not something we want,” Xi said in remarks to journalists pooled by the South China Morning Post.

Trading recommendation: Buy 3114 and take profit 3137

TRADE OILS WITHOUT SWAPS!