Learn To Trade
 
Indicators & Chart Patterns

Deepen your knowledge of technical analysis indicators and hone your skills as a trader.

Find your detailed guides here
Trading Glossary

From beginners to experts, all traders need to know a wide range of technical terms. Let us be your guide.

Learn More
Knowledge Base

No matter your experience level, download our free trading guides and develop your skills.

Learn More
Learn To Trade

Trade smarter: boost your skills with our training resources.

Create a live account
Market Analysis
 
Market News

All the latest market news, with regular insights and analysis from our in-house experts

Learn More
Economic Calendar

Make sure you are ahead of every market move with our constantly updated economic calendar.

Learn More
Technical Analysis

Harness past market data to forecast price direction and anticipate market moves.

Learn More
Live Webinars

Boost your knowledge with our live, interactive webinars delivered by industry experts.

Register now
Market Analysis

Harness the market intelligence you need to build your trading strategies.

Create a live account
Partnership
 
Affiliate Programme

Grow your business and get rewarded. Find out more about our Affiliate Programme today.

Learn More
Money Manager

Increase your income and get compensated for your trading knowledge with ThinkInvest, putting you in control.

Learn More
API Trading

Create your own trading platform or data tools with our cutting-edge APIs.

Learn More
Introducing Broker

ThinkMarkets ensures high levels of client satisfaction with high client retention and conversion rates.

Learn More
White Label

We supply everything you need to create your own brand in the Forex industry.

Learn More
Regional Representatives

Partner with ThinkMarkets today to access full consulting services, promotional materials and your own budgets.

Learn More
Partnership

Plug into the next-gen platforms and the trades your clients want.

Create a live account
About ThinkMarkets
 
About Us

Find out more about ThinkMarkets, an established, multi-award winning global broker you can trust.

Learn More
Security of Funds

Security of your funds is our number one priority. Find out more about our insurance policy with Lloyd's of London.

Learn More
Trading Infrastructure

When it comes to the speed we execute your trades, no expense is spared. Find out more.

Learn More
ThinkMarkets News

Keep up to date with our latest company news and announcements.

Learn More
Contact Us

Our multilingual support team is here for you 24/7.

Learn More
About ThinkMarkets

Global presence, local expertise - find out what sets us apart.

Create a live account
Create account

Crude rallies on big US oil crude draw; demand optimism

Fawad Razaqzada Fawad Razaqzada 14/04/2021
Crude rallies on big US oil crude draw; demand optimism Crude rallies on big US oil crude draw; demand optimism
Crude rallies on big US oil crude draw; demand optimism Fawad Razaqzada
Crude oil has rallied about 3.5% today, potentially paving the way for more gains in the days ahead. Today’s upsurge was mainly in response to news of a big drawdown in US crude oil stocks to the tune of 5890K barrels last week vs. 2700K expected. But with other risk assets also rising, there is no doubt that optimism over the re-opening of global economies has also helped to fuel the rally after a lengthy consolidation in recent weeks.  

Sentiment has been boosted by signs that the Eurozone has finally got its act together in ramping up Covid vaccinations.  Concerns about links to cases of blood clotting with Johnson & Johnson’s vaccine have also been shrugged off as the US government assured the public that it has plenty of supplies of other Covid vaccines.

With easing of restrictions, travel and holidays will hopefully resume as we head towards the summer. This is why oil forecasters have pushed up their demand expectations. The IEA, for example, boosted its oil demand forecast for 2021 today and now expects an increase of 5.7 million bpd of crude oil compared to last year. A day earlier, the OPEC had raised its 2021 oil demand growth forecast to 5.95 million bpd.

At the same time, the OPEC and allies appear keen to relax their supply curbs very slowly.

The net impact of this is that demand looks set to recover at a quicker pace than supply growth. Against this backdrop, investors are happy to keep buying the dips in crude oil.

The key risk facing the crude rally is if production is ramped up faster than people expect, or we get more lockdowns in top oil consumer nations, such as India.

Today’s rally means the recent consolidation has been resolved with the bulls coming out on top.

WTISource: ThinkMarkets and TradingView.com

The sellers are now likely to aside until prices rise to more significant resistance levels like $63.60 or $65.00 on WTI. Key support is now the base of the breakout around $60.75, with additional supports coming in at $61.65 and $62.25 – the latter being the high of the recent consolidation range. However, if the above levels fail to provide support and oil gives back its gains then the bulls will be in trouble. Specifically, a potential break below $58.75, the most recent low prior to the breakout, would mark an end to the short-term bullish price structure.
Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.

Learn more to earn more

our Education center

Related articles:

Ethereum hits new record but Dogecoin struggles

By Fawad Razaqzada

10/05/2021

Week Ahead: May 10, 2021

By Fawad Razaqzada

10/05/2021

NFP Preview

By Fawad Razaqzada

07/05/2021

Market update: Gold breaks out and Dow hits n...

By Fawad Razaqzada

06/05/2021

Could BoE trigger break of GBP/USD 1.4 handle?

By Fawad Razaqzada

06/05/2021

Meet our contributors
Fawad Razaqzada
×
Fawad Razaqzada
Market Analyst, London

Fawad is an experienced analyst and economist having been involved in the financial markets since 2010, producing market commentary and research for a number of global FX, CFD and Spread Betting brokerage firms. He leverages years of market knowledge to provide retail and professional traders worldwide with succinct fundamental & technical analysis. Fawad also offers trading education to help shorten the learning curves of developing traders.
 
His colleagues consider him an expert at reading price action on the charts. This together with his deep understanding of economics and fundamental analysis, and trading experience, puts him in a great position to forecast short term price movements. Fawad covers a wide range of markets, including FX, commodities, stock indices and cryptocurrencies and his comments are regularly quoted by the leading financial publications such as Reuters and Market Watch. In addition to ThinkMarkets, Fawad also provides analysis and premium trade signals on his own website at TradingCandles.com.
 
 

Carl Capolingua
×
Carl Capolingua
Market Analyst, Melbourne

Carl has over 20 years' experience in financial markets and has held senior analyst roles at a number of financial institutions. Specialising in Australian and US stock markets in particular, Carl uses a top-down approach to assess the global macro picture before using both technical and fundamental techniques to select stocks. He regularly appears as an expert commentator on a number of media outlets throughout the Asia-Pacific region.
 
 
 

Kearabilwe
×
Kearabilwe Nonyana
Market Analyst, South Africa

Kearabilwe is an experienced Sales trader and Analyst specialising in Equity and Equity derivatives. His career in the financial markets has seen him hold various positions in global investment banks and global CFD and Spread betting firms. He has deep interest in using quantitative methods to help him understand and teach the fundamental drivers of asset prices.
 
 
 

Fawad Razaqzada
Fawad Razaqzada
Fawad is an experienced analyst and economist having been involved in the financial markets since 2010, producing market commentary and research for a number of global FX, CFD and Spread Betting brokerage firms.
Carl Capolingua
Carl Capolingua
Carl has over 20 years' experience in financial markets and has held senior analyst roles at a number of financial institutions.
Kearabilwe
Kearabilwe Nonyana
Kearabilwe is an experienced Sales trader and Analyst specialising in Equity and Equity derivatives.

Feel confident?

Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
Back to top