Tug of war in Crude Oil continues
If there’s one thing you can say about Crude Oil, it’s that the world’s number one commodity is always exciting.
The tail end of 2016 provided one of the most fascinating sequences of events for the global economy as OPEC, the group that controls the largest amount of crude oil output in the world, reached a historic production cut agreement. Not only did members manage to hammer out a deal despite some opposition from key states Iraq and Iran, but the cartel also managed to persuade non-members such as Russia to apply their own cuts in the hope of significantly redressing the global oversupply. Furthermore, the group has seen record compliance levels from the members involved, with over 90% of the proposed cuts being implemented. Bravo!
Yet in the early part of 2017, an uptick in US production has thrown yet another intriguing factor into the mix, creating something of a tug of war for Crude Oil prices. Subsequently, we have seen a tight trading range above $50 but below $60 per barrel for several months as investors determine which side is having the greater impact.
In March, it appears US producers may have the slight edge. Rising US government stockpiles since the November OPEC production cut deal have not been well received and threaten to drag prices back below $50 per barrel. To counter this, could we see OPEC looking to extend its agreement, not just internally but externally too? After the surprising turn of events at the end of 2016, it seems nothing is out of the question for 2017!
Energy companies in the UK took the OPEC agreement in their stride coming into 2017, with many major Oilers such as BP and Shell posting fresh multi-year highs in January. However, as the squeeze put on prices by US production increases, household energy names have since pared some of their OPEC-inspired gains. With the marketplace hanging in the balance, there couldn’t be a better time to learn to trade these exciting UK stocks.
In exciting times, you should have reliable service
Despite the changes in the market place, our message remains the same – wherever we go from here, there are always attractive opportunities to trade, now more than ever! Of course, you’ll want a trusted broker to help you along the way, fully regulated by the FCA, while a multi-year award-winning service would be nice too…
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This report will provide you a guide of how to trade some of the UK’s most popular Oil & Gas stocks, as well as providing some of our research team’s own technical analysis on four major players in the sector. Fancy expanding your trading horizons with an award-winning brokerage? Read on to find out how, today!