Crude oil prices acquired an increase last week, approaching $57 a barrel
Still, demand concerns have exploded as global development shows repeated indications of slowing
Crude oil could come under pressure in the coming days if the Fed is less dovish than imagined
CRUDE OIL OUTLOOK APPEARS BEARISH AT FRICTION
AHEAD OF FOMC
Crude oil realizes its own at a crisis point as price approaches the 200-day moving average, but principles turn to maintain the commodity in balance. In October, however, OPEC declared it would cut down results in 2020 due to lower demand forecasts – an effect of slowing down global development. Consequently, crude oil rallied to trendline resistance around $57 and will expect to recover the 200-day moving average and keep on trying higher. That said, Wednesday’s Fed meeting could look to wreck the commodity’s recover. A 25-basis point cut is expected, but market individuals are less confident in the future forecast. That said, there is potential for the Fed to disappoint the market. The central bank signal October’s cut marks in the “mid-cycle adjustment,” it will transform to weaker growth forecasts. With Hong Kong’s economy dropping into economic decline weakening retail sales data in the United States and terrifying growth forecasts from the various intergovernmental commercial systems, the dispute for a global recession has only firmed. Therefore, crude’s demand outlook and by extension price – could weaken in the weeks ahead should the Fed provide a somewhat contentious thin. Retail trader records show 68.36% of traders are net-long with the ratio of traders long to short at 2.16 to 1. Many traders net-long is 16.82% more than Monday and 21.45% lower from last week, while the trader’s net-short is 30.34% lower than Monday and 18.58% higher from last week. We generally take a contrarian view to audience sentiment, and the certainty traders are net-long recommended crude oil prices may tend to fall.