Brent to Retest 50 Dollars a Barrel on Iranian Deal?
- When all the experts say sell, it's generally the best time to buy.
The guest article is written by Robert Taylor. He is a professional Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value. Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value. Read this Term trader who offers training and mentoring for new and experienced traders that are struggling to make money consistently from the markets on his website Tradeforexmakemoney.
After almost 2 years of negotiations a deal has finally been reached to curtail Iran's nuclear program for up to 10 years, in return for the lifting of economic sanctions. Before the sanctions were imposed Iran was a major producer and supplier of oil. So will this potential new supply have an effect on the price of oil? How will traders position themselves in the event of this additional supply coming into the market?
Oil prices have been very depressed of late with concerns over a China slowdown and the strong dollar. Although oil can be traded very technically, the long-term trend is fundamentally driven. Now you only have to look at any chart of Brent or WTI to see that we are in a very large downtrend.
At the time of writing this article, Brent is trading around the 55 dollar a barrel level and WTI is at 51 dollars a barrel. Analysts do not expect Iranian oil exports to be full restored until 2016, but some experts talk of oil reaching 10 and 20 dollars a barrel, on this potential new supply to the market, but don't hit the sell button just yet.
Financial experts and professional traders generally factor in events like this, don't forget this deal has been in the pipeline for months, so a certain amount of this new supply has already been factored into the price in my opinion. So we may see a slight rally in prices before another leg down.
I think the real issue is whether Iran's oil supply is restricted or not. Iran is obviously keen to get on line and start selling their oil again, but I believe there will be a restriction imposed on how much they can produce, until the price of oil has stabilized, or demand has increased. Any restriction imposed will have an effect on oil prices obviously, but even if they do not impose a restriction and allow Iran to got to maximum output, I think 10 dollars a barrel is not going to happen anytime soon, if at all. When all the experts say sell, it's generally the best time to buy.
But although I am not in any hurry to go long oil, I would be looking to sell any rallies in price, as I think we need to test 50 dollars a barrel for Brent and 40 for WTI in the medium-term.
The guest article is written by Robert Taylor. He is a professional Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value. Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value. Read this Term trader who offers training and mentoring for new and experienced traders that are struggling to make money consistently from the markets on his website Tradeforexmakemoney.
After almost 2 years of negotiations a deal has finally been reached to curtail Iran's nuclear program for up to 10 years, in return for the lifting of economic sanctions. Before the sanctions were imposed Iran was a major producer and supplier of oil. So will this potential new supply have an effect on the price of oil? How will traders position themselves in the event of this additional supply coming into the market?
Oil prices have been very depressed of late with concerns over a China slowdown and the strong dollar. Although oil can be traded very technically, the long-term trend is fundamentally driven. Now you only have to look at any chart of Brent or WTI to see that we are in a very large downtrend.
At the time of writing this article, Brent is trading around the 55 dollar a barrel level and WTI is at 51 dollars a barrel. Analysts do not expect Iranian oil exports to be full restored until 2016, but some experts talk of oil reaching 10 and 20 dollars a barrel, on this potential new supply to the market, but don't hit the sell button just yet.
Financial experts and professional traders generally factor in events like this, don't forget this deal has been in the pipeline for months, so a certain amount of this new supply has already been factored into the price in my opinion. So we may see a slight rally in prices before another leg down.
I think the real issue is whether Iran's oil supply is restricted or not. Iran is obviously keen to get on line and start selling their oil again, but I believe there will be a restriction imposed on how much they can produce, until the price of oil has stabilized, or demand has increased. Any restriction imposed will have an effect on oil prices obviously, but even if they do not impose a restriction and allow Iran to got to maximum output, I think 10 dollars a barrel is not going to happen anytime soon, if at all. When all the experts say sell, it's generally the best time to buy.
But although I am not in any hurry to go long oil, I would be looking to sell any rallies in price, as I think we need to test 50 dollars a barrel for Brent and 40 for WTI in the medium-term.