Oil moved from 71.167 to 64.407 yesterday.
According to the WHO, the new Covid 19 variant “Omicron” is spreading far more faster than others.
Omicron could spreading everywhere around world in case if not preventing on time, according to WHO. If so, the oil price might have another huge drop.
OPEC+ hosted the meeting to decide whether to release the Oil into the market or reduce the supply while the price is descending and the concern on the Omicron might also slow down the growth of the world.
In November, Brent dropped 16.4% while WTI downed 20.8% which the most monthly drop since March 2020. Louise Dickson, senior analyst at Rystad Energy stated “The thread on oil demand is true, there could be a drop of 3 Mil. barrels per day for Q1 of 2022”.
According to current market condition, the price might has another drop from 67.322 to 53.557 per barrel, while the increasing might low.
Investors should short in between 69.00 to 70.00 with the suitable take profit and stop loss function.
Analyzed by: Mr. Long Samnang
Business Manager of Golden FX Link Capital
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