Oil Prices Break Out Amidst Global Weakness and Optimism Over Fed's Rate Hiking

Oil

Crude prices are tentatively breaking out as expectations remain for the oil market to remain tight despite all global weakness that is emerging. The rally in crude oil is impressive as it occurs as Europe is looking very weak right now, the US is slowing down, and China’s Politburo isn’t expected to unveil major stimulus this week.

Oil is also getting a boost from Wall Street as optimism grows the end of the Fed’s rate hiking campaign appears it could be here. With Europe lagging by a couple months, we could start seeing all the major economies eyeing easing as the next move. Market positioning probably has the oil trade look a lot more attractive than US stocks, so if bullish momentum takes WTI crude to $80, it could have decent momentum behind that move.

Ed Moya

With more than 20 years’ trading experience, Ed Moya is a senior market analyst with OANDA, producing up-to-the-minute intermarket analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies. Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His views are trusted by the world’s most renowned global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.

Topics

oil china us europe wti crude wall street breakout rally oil market stimulus bullish momentum market positioning easing major economies optimism crude prices Politburo tight global weakness Fed's rate hiking $80

Oil Prices Break Out Amidst Global Weakness and Optimism Over Fed's Rate Hiking

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Oil

Ed Moya

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