logo |

News

    Home   >     Industry    >     Main body

    Pressure on Oil Prices Due to Three Factors| Influencer‘s Insight •Jasper Lo

    Abstract:With regard to oil prices, it is necessary to pay attention to three crucial political and economic factors this week that seem to be unfavourable for the trend of oil prices coincidentally. It is adverse impacts triggered by them that must be focused on if you are keen on oil prices.
    image.jpg

      With regard to oil prices, it is necessary to pay attention to three crucial political and economic factors this week that seem to be unfavourable for the trend of oil prices coincidentally. It is adverse impacts triggered by them that must be focused on if you are keen on oil prices.

      COVID-19-related factor comes first. Pandemic situation worsening further in Asia, the number of new confirmed cases in India and Japan has surged again, which has also haunted Pakistan and the Philippines. Even Hong Kong and Macao announced the circuit-breaker mechanism on civil aircrafts from India, Pakistan and the Philippines, issuing a ban on the landing of flights from these regions in Hong Kong. As for Japan, comments on the suspension of the Tokyo Olympics have been risen because of its domestic worsening situation. As a result, the prices of NYMEX WTI (CL) witnessed a resistance level and fell back.

      

    First-Annual-Global-Climate-Restoration-Forum-4_副本.jpg

      Speaking of the climate, Biden is about to invite heads of 40 countries on April 22nd to the climate forum convened by him, hoping to further reach a climate plan relating carbon emission cuts. A joint statement issued by Kerry, U.S. Special Presidential Envoy for Climate, and Xie Zhenhua, Chinese Special Envoy, after their meeting noted that two nations will discuss the room for cooperation against global climate crisis and the commitment to this aspect, which is believed to further promote the environmental protection and the renewable energy resources, thereby having an influence on reducing the use of traditional energy resources. This trend is predicted to impact oil prices negatively.

      As for geopolitics, following the US large-scale sanction against Russia, Poland and Czech Republic took the same action because of the severer crisis between Russia and Ukraine. The UK even sent two warships to the Black Sea in a demonstration of its military support for Ukraine. It is predicted that EU, NATO and the other European countries will join in the related action to support Ukraine. As one of the oil-rich nations, Russia saw a different situation from the Middle East when it came to the geopolitical tension. Generally speaking, oil prices bear witness to a rapid growth during the outbreak of such tension in the Middle East whereas they plummeted totally amid the Russo-Ukrainian War in 2014, including the prices of CL plunging from USD 107 to USD 26. As a result, a conspiracy emerged that the US was behind this sharp decline that aimed to set off the crisis in Russias energy profits. During the previous war, Russia declared the slump in oil prices (the situation repeats this time), conducting retreat when its economy was impaired by severe recession.

      Consequently, the CL prices, reaching USD 64 and falling back, is possible to drop to the recent strong support level at USD 57. If maintaining this figure is made impossible by the worsening situation, prices are expected to have a chance to hit USD 54 even USD 51.5 before their cessation.

    South African Rand

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand

    United States Dollar

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand
    Current Rate  :
    --
    Amount
    South African Rand
    Available
    -- United States Dollar
    Risk Warning

    The Database of WikiFX comes from the official regulatory authorities , such as the FCA, ASIC, etc. The published content is also based on fairness, objectivity and fact. WikiFX doesn't ask for PR fees, advertising fees, ranking fees, data cleaning fees and other illogical fees. WikiFX will do its utmost to maintain the consistency and synchronization of database with authoritative data sources such as regulatory authorities, but does not guarantee the data to be up to date consistently.

    Given the complexity of forex industry, some brokers are issued legal licenses by cheating regulation institutes. If the data published by WikiFX are not in accordance with the fact, please click 'Complaints 'and 'Correction' to inform us. We will check immediately and release the results.

    Foreign exchange, precious metals and over-the-counter (OTC) contracts are leveraged products, which have high risks and may lead to losses of your investment principal. Please invest rationally.

    Special Note, the content of the Wikifx site is for information purposes only and should not be construed as investment advice. The Forex broker is chosen by the client. The client understands and takes into account all risks arising with Forex trading is not relevant with WikiFX, the client should bear full responsibility for their consequences.