The oil and gas rigs hit a record low | 15 May 2020

The oil and gas rigs hit a record low


#WTI:


We are expecting the development of a bullish rally in the oil market in the new five-day period. U.S. oil rigs, as measured by oil services firm Baker Hughes, fell by 33 this week to reach 292. The number had previously never fallen beneath 300, since the 2008 financial crisis. The record low for U.S. oil rigs was 98, seen in November 2002. But a combination of oil and gas rigs, known as the total rig count, hit a record low of 374, after falling by 34 this week, according to Baker Hughes, which has been tracking those numbers since 1940. This is a positive signal for oil quotes!


Trading recommendation: Buy 25.00 and take profit 26.66


The oil and gas rigs hit a record low


#SP500:


The Federal Reserve, which has bought more than $1.5 trillion of Treasuries in daily operations over eight weeks in an effort to restore smooth market functioning during the COVID-19 pandemic, on Friday said it would buy securities at a pace of about $7 billion a day May 11-15. There will be one or two operations each day, targeting either nominal Treasuries or inflation-protected securities, according to the schedule. In a sign of strong risk appetite, the CBOE Volatility Index, or fear index, fell 8.2% to a more-than-two-month low. This factor will have a positive impact on the capitalization of American corporations.


Trading recommendation: Buy 2929 and take profit 2964.


The oil and gas rigs hit a record low


AUDUSD:


The bullish rally in the commodity market will have a positive impact on the value of the Australian dollar. Investors are increasing their long positions in the market of precious metals and industrial metals. A strong rally is observed in the copper market. This is a positive signal for the Australian currency. Australia is the world's largest exporter of copper and gold. The bulk of the job losses in Australia were temporary and are expected to return as stay-at-home orders are gradually lifted and businesses start to open.


Trading recommendation: Buy 0.6525 and take profit 0.6581.

 

David Johnson
Analyst of «FreshForex» company
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