11.03.2014 - Oil changes the trend

Quotations of the U.S. benchmark Light Sweet crude oil again reached the strong support at 101.00 dollars per barrel. Price decline is due to several factors. Thus, in the United States the Fed continues to taper the quantitative easing program, in China is slowing the industrial production, and the latest data on the trade balance in the second world's largest oil consumer after the United States showed a deficit of 23 billion, while analysts expected a surplus of 13.2 billion. Another factor that leads to a decrease in demand for oil and oil products is warming in North America, where this year have been observed abnormal frosts, which have led to an increased demand for fuel.

Among the factors that support oil prices are struggle of the Libyan government with rebels for control over the ports through which goes the export of oil and the unstable situation in Iraq and South Sudan. In addition, traders are afraid of rising tensions in Crimea.

We maintain our negative medium and long term outlook for oil prices. A signal to sell will be fixation of price below 101.00 dollars per barrel.

Wish you the profits!

FXFINPRO Capital Analytical department.

RISK WARNING: Trading of complex financial products, such as Stocks, Futures, Foreign Exchange ("Forex"), Contracts for Difference ("CFDs"), Indices, Options, or other financial derivatives, on "margin" carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading these markets, and seek advice from an independent financial advisor if you have any questions or doubts. Please carefully read our full "Risk Disclosure" and "Risk Disclosures for Financial Instruments & Investment Services". FXFINPRO Capital is the trading name of PFX Financial Professionals Limited, a limited liability company formed under the laws of Cyprus, registered with the Registrar of Companies in Nicosia, Cyprus, under nr. HE 237840 and regulated by the Cyprus Securities and Exchange Commission with license number 193/13.