24.12.2014 - Drop of oil has stopped, but the negative trend is saved

The price of Light Sweet crude oil continues to consolidate within the local sideways trend after the decline stopped. The reason for the sharp rise in share price yesterday was the data on the growth of world's largest economy by 5.0% in the 3rd quarter of this year. It should be noted that despite this, the oversupply of oil on the market continues to put pressure on the quotes of raw materials. We recall that the OPEC countries have refused to reduce the oil production quotas. Lower oil prices will negatively affect the activity of drilling in North America, where continues an increase in volumes of oil production. Stopping a number of projects in Russia, is also a cause for further slowdown in production in the world. Given these factors and the weakening demand in Europe and Asia, we maintain a medium-term negative outlook on oil and recommend holding short positions with the target around 50 dollars per barrel.

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.