Why has USOIL skyrocketed?
Updated
Yellow leaves give up the trunk in anticipation of the verdant spring; candles sacrifice their perfect bodies to have a lifetime of brightness; and the mind lets go of the mundane clamor to embrace tranquility. Only by letting go can one free their hands and seize true happiness and joy that belong to them. Learning to let go is essential to living a fulfilling life.
Now, let's analyze the reasons for the USOIL rise on Friday:
Middle East conflict: Saudi Arabia and the United Arab Emirates have conflicts over multiple issues. The most significant disagreement is related to Yemen. The UAE is seeking to build a military base and runway on an island at the southern end of the Red Sea in the Mandeb Strait. However, Saudi Arabia has refused. Sources also indicate that the UAE has been urging OPEC+ to allow for increased oil production, but Saudi Arabia has remained steadfast in its refusal. In the end, the UAE publicly and privately indicated that it would adhere to the current OPEC+ agreement for at least this year. Therefore, this led to a significant rebound in crude oil prices after the initial sharp drop. However, it is important to continue monitoring the situation to see if the development of events will persist, which represents the primary risk.
Sudden incidents: At least 12 people died in a pipeline explosion in Nigeria. On March 3, the Rivers State Police Department issued a statement saying that a segment of an oil pipeline in a village in the Imoha area of the state caught fire and exploded in the early morning. At the time of the accident, local residents were stealing oil from the pipeline, and it is believed that the burnt-out cars found at the scene belong to the oil thieves. The police are investigating the cause of the accident. This is a bullish factor for crude oil since Nigeria produces 1.44 million barrels per day, and the already repaired production may once again be affected.
Data release: In the week ending March 3, the total number of oil drilling rigs in the United States was 592, compared to an expected 602 and a previous value of 600. This data is bullish for USOIL.
From a technical perspective, USOIL was oscillating within the 76-78 range, but due to the impact of sudden events and data, the trend broke through upwards, and the trend turned bullish. It is worth emphasizing that USOIL belongs to the energy and strategic resources sector, and many events can lead to dramatic price fluctuations. Therefore, it is important to pay attention not only to technical analysis but also to the impact of news. In the short term, we will focus on whether 80.60 can form an effective breakthrough. If the resistance above is strong, the trend will fall back to around 78.60, and then we can lay out a long position in line with the trend.
In the short term, the USOIL market is not stable, and cautious investors should observe mainly and wait for the impact of news to dissipate before laying out a more secure technical strategy. I will provide specific operation suggestions timely, and feel free to leave me a message if you have any questions. Thank you for your attention and support.
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waiting to startNote
78.4 BUYTrade active
Trade active
USOIL start making profits, pay attention to lighten up positionsTrade active
continue risingTrade active
Profitable
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