Trading With Linorth
OPEC+ members agreed to continuing the cuts for 1 month (till the end of July!)
from there they are going to make decisions based on market situation of supply and demand.
and they have given an ultimatum till September! to members who weren't complying fully with the cuts!

So there is a possibility of a gap upwards in oil when market opens, but its very likely to be short lived.
Linorth, edited  

8 comments

Rex
So what does it mean ?
Linorth
Rex
So what does it mean ?
it means that they see the price as being almost "high enough" and they might capitalize on it by pumping more oil in the market from next month.
which suggest there exist a ceiling for the oil prices in their eyes.
Rex
Linorth
it means that they see the price as being almost "high enough" and they might capitalize on it by pumping more oil in the market from next month. which suggest there exist a ceiling for the oil prices in their eyes.
Does it means the price will be bearish in coming days ?
Linorth
Rex
Does it means the price will be bearish in coming days ?
no. the short lived part was about the gap. (meaning I think it will gap up and then close the gap again)

the overall direction is up for another month. Aramco is going to increase their ideal sale price for international clients in July. so its expected that oil prices continue raising.
1
Rex
Oh i see. I am new at trading so thanks for answering.
1
Koenig Wolf
Oil is profitable for most extractors at 40$, Brent oil might go up a lot since brent usually is more expensive than US oil. The car traffic seems to have gone to pre china virus levels, but the air and cargo traffic is still down. Oil was a buy at the 20$ usd ranges but the high swap rates kept me from doing that, how do you avoid the high swap rates? I went from 100:1 to 10:1 leverage and the swap rates are the same, how do pro traders keep positions for weeks/months/years? with no leverage ?
Linorth
Koenig Wolf
Oil is profitable for most extractors at 40$, Brent oil might go up a lot since brent usually is more expensive than US oil. The car traffic seems to have gone to pre china virus levels, but the air and cargo traffic is still down. Oil was a buy at the 20$ usd ranges but the high swap rates kept me from doing that, how do you avoid the high swap rates? I went from 100:1 to 10:1 leverage and the swap rates are the same, how do pro traders keep positions for weeks/months/years? with no leverage ?
swap and leverage are two different things. leverage is related to your buying power (basically how much credit you get on top of your money to buy/sell), while swap is the interest which you pay on that credit when you hold a position overnight.

you need to study these concepts more before attempting to do position trading or long term swing trades as the fees might eat away at your profits or pull you into negative if you don't know what you are doing.

I suggest you start here to learn what the holding costs are all about and how they are often calculated:
https://www.cmcmarkets.com/en-ca/learn-cfd-trading/holding-costs-explained
OLA
What is the outlook for gold?